Since it's Nvidia middleware I don't see that as a big problem. Just because it's not what AMD choose to do with TressFX doesn't mean that everyone has to do it like that.
Is it ideal? no.
Does it prove that GameWorks is causing issues beyond AMD not having much chance to optimise for it? (Which apparently after 5 years of DirectX there's not much left for them to optimise in their drivers, apparently)
Even Ryan brought up that Nvidia had issues on Tomb Raider, the TressFX game. I believe there was a quote floating around where Nvidia said they only got sigh of Tomb Raider late on.
As said, GameWorks could in theory be used maliciously and I think it's poor form on Nvidia's part if they do. But just having a middleware library that you're not openly releasing source code too doesn't have to be a problem.
I have to say, for the most part I thought Ryan did a good job.
Agree, Ryan did a great job. It was a fascinating interview and i think he explained the differences between the GameWorks approach and TressFX approach the effect that has on being able to improve things.