While I agree that most of the effects could be done in the "usual" fashion and many of those affects can run at full speed on the CPU in the limited fashion used in batman... I can see now why many of the effects are simply missing on non-hardware physx as the developer would have had to spend a few more months coding alternative paths for each individual feature that with physx they could implement with a few lines of code...
Unfortunatly the subtlies of the smoke effects, etc. seem to be lost on a lot of people - personally the "usual" style smoke looks cheap and nasty to me now I have noticed and can compare it to the physics smoke that interacts with the environment, flows and reacts to objects passing through it.
Same with the cloth effects, etc. and proper smoke/fluid dynamics, cloth, etc. effects can't currently be done on the CPU with useable performance.
The smoke is the only thing that gets my attention.