This probably just means somebody with brains at Nvidia realised that alienating some 35% of your target market is not a good sales tactic.
I was interested in where the 35% came from exactly?
I'm pretty sure it alienated every ATi/AMD user, and Rroff and guys thought it was a very poor idea and didn't reflect well on Nvidia to really, anyone. So really they were alienating both AMD and Nvidia users alike, all those guys that had a Nvidia card for physx, who were boned by Nvidia when they removed support.
Meh, its the best move Nvidia could make, but can only really come across as failure "we're letting it work with an AMD card present again because, well, removing support just got us a shedload of bad press so we'll stop doing it".
Its not like "it took us tonnes of work but out the goodness of our hearts we finally got it working when an AMD card is present, look how caring we our of our clients".
If Physx was good, it would be great news, honestly, the quicker the death it dies at this stage the better, as dozens, and dozens of games have showed, accuracy, overly complex and high power using effects that slow a game down pale in comparison to easy to do widely available fast to use effects for everyone, Just Cause 2, Crysis, and the list goes on.
At this stage Havok is the standard, ported to open cl and accelerated on any Nvidia/AMD card is the best for EVERY gamer, will work for every game and is already useful enough with widescale use, accelerating it would only enable them to increase the amount of things they can add into a game and inevitably, get slightly more realistic.
I'm all for accuracy, and realism, when it doesn't kill performance or take away from the fun of a game, moveable objects, interactivity CAN make a game more fun, I don't require it to be ultra accurate at 10fps, when I can have it work and be fun and not too accurate, at 60fps(and so can everyone else).
The real worry I have is the Ageia guy will push useless technologies for AMD, rather than push acceleration of things we need, time will tell.