It kinda is taken away. A lot of basic bog standard effects are removed (in Borderlands 2 for example) if you turn PhysX off, effects that have been in games for years, to presumably exaggerate the differences between with PhysX and without PhysX.
For example, the physics in Borderlands 2 with PhysX off are a lot more basic than the physics in Borderlands, which didn't have any hardware PhysX capabilities.
You can run physx on low which will run it as standard on the CPU and give you the basics that you have come to expect in any modern game, this will be a very minimal performance hit. Medium/high settings are added extras for people who have hardware that supports it.
Saying things have been taken away is like saying something has been taken away when only the high end cards get soft shadows & multiple dynamic lights. They add to the game so why cant we have them on low settings? Simple answer, its not supported by a lower end graphics card. Its the same for physx but instead of lower end graphics card it is a certain make. You have the choice when buying hardware if you want certain extras, just like any other in game setting that may make you chose one card over another...