Technically its developers who aren't using it properly (ignoring nVidia done implementations like Batman) the API itself is fully functional, available to use and matured theres nothing to stop a developer fully utilising it other than the issues like making use of GPU PhysX potentially chops off a large proportion of your potential audience which no developer/publisher likes.
And who do you think is pushing them to use it in such a manner?
It's not the developer's advantage if they employ shoddy implementations of PhysX in their games, they will have to have some form of motivation to do so.
It's no secret that PhysX as an API is completely gimped to make sure it runs poorly on the CPU to give the notion that an nVidia GPU is NEEDED some credibility.
Otherwise, why would a developer do that? "I know, let's make sure the games run bad on non-nVidia hardware on purpose just for fun" right?