None of that gets in the way of overcoming PhysX, PhysX doesn't have a lifespan because it's locked to nVidia.
Same was said about CUDA, yet its faster growing than any of the competition.
One of two things may happen, Nvidia concede and simply use the same engine, which is what developers would want them to do given that they would like to port from PC to Console or the other way... without having to deal with multiple engines.
Or Nvidia get pig headed about it, refuse to change, and developers ignore Nvidia's engine, much like they do today.
It has to be said, AMD are really cranking it up.
Good, its about time!
For anyone to concede first takes a viable alternative and that simply doesn't exist and AMD or anyone else have a long way to go to prove they can provide and support one... and then catch up with where PhysX is now. You only have to look at say bullet to see what a sad state things are in in that regard - AMD made them a lot of promises and delivered on... well pretty much none of them. (read all the "change of plans", etc. headlines).
The only thing thats likely to have any impact in this regard realistically is the shape of things physics wise on the next xbox.