You're creating a huge strawman argument and one that's not even true. None of it wouldn't even matter if AMD could engineer something that's truly competitive, and stop worrying about what NVIDIA is doing. That's all they ever seem to do, the only difference now is, they're not doing it publically and simply handing stories to the press.
PhysX based fluid effects like that in Borderlands 2 were exactly what Ageia (not Ageis) demonstrated from day one, the only difference is NVIDIA had the nouse and funding to get developers to use the libraries where Ageia didn't. That sort of thing isn't easy, which is why AMD only managed it once with TressFX, and look how many titles that used this before it was absolved.
Doesn't matter how you cut it, ones purchasing decision rests on performance above and before all else. What NVIDIA is doing with its partners is really of no concern to me.
Yet nothing actually came of PhysX, you don't even hear about it now because its fizzled out.
I'm not creating a strawman argument, I'm not convinced understand what that means. There isn't anything I'm misrepresenting, then arguing against that misrepresentation.
I'm highlighting that nVidia works on illiciting an emotional response, and trying to tie customers into a proprietary eco system whereby they need to keep buying nVidia to make full use of the software or hardware they have by making people feel as if they are missing out by not having nVidia.
The main thing they actually have over the competition was never good enough for them, even now, they have to keep doing the slimy things.
Which is why PhysX came up, because it never went anywhere outside of token gestures of:
"Here are normal physics effects"
Usually involving a scene with absolutely nothing going on, as if CPU based physics couldn't muster anything better.
As I said, only a handful of games actually even used GPU accelerated PhysX, and when they did it was over the top shoehorned nonsense. Speaking of Borderlands 2, the GPU PhysX in that were a mess and caused visual obstructions because of how over the top and gratuitous it was.
There's a reason it's not used or spoken about much now, because it was only ever a checkbox feature for marketing.
Tress FX didn't work for similar reasons. It was initially attempted as a proprietary format, then updated to work with nVidia, but ultimately an unnecessary attempt to tack on a checkbox feature.
Why are you also suggesting that this is a non story just because the source is AMD?
It appears that the story is actually true, regardless of whether it's from AMD or not, so that's completely and utterly irrelevant.