This is by far the best use of tessellation I've seen yet - tho still some design issues... I didn't really expect anyone to use it to this extent for another 18 months or so.
Your still better off as a game developer tho using offline tools to create 2 copies of the sections of world geometry (one for close up with high detail, one for distance with reduced LOD) it gives far cleaner, more predictable results with better performance... the extra memory and bus bandwidth used is pretty negligible on a modern PC - savings here being one of the claims for using tessellation.
AS with anything, benchmarks tend to overuse new features, purely to show them off to their max, it does and will save power for higher detail, its not just memory and bus bandwidth, you still have to draw the extra detail, higher quality textures mean more memory used, less spare bandwidth and more power used.
The problem being, this tesselation unit has been in ATi hardware for, well 3ish years. its a HUGE gamble to make a massive tesselation unit capable of doing everything without breaking a sweat, when to date Nvidia have done nothing but screw ATi at every chance and have prevented tesselation taking off for 3 years already. Dedicating 3times the amount of transistors to a more powerful "tesselator" on die, if no games use it, is a huge waste of cash, every core more expensive, the inherent lower yields a bigger core provides ontop of the larger core meaning less per waifer.
Once it takes off, once games use it more often and once ATi know Nvidia support and use the feature in games also, meaning more and more games use it, the next generation from them can dedicate much more space to a much more powerful tesselator on die, which can simply do a lot of work going on at a far accelerated rate compared to normal shaders aswell as save a crap load of memory.
However, this is where Nvidia might be faultering and Tesselation might ultimately fail to make an appearance in many games. If Nvidia only do tesselation in software, not hardware, it might be so slow they cant' use it, so lots of games won't support it. Again why ATi aren't risking extra wasted transistors........ yet.
Tesselation is awesome, but might simple go unused due to a certain bunch of gits
