No. Unless ATI supports the PhysX API (which they
can do, but would also need to support CUDA, which they will never do), it is their problem. PhysX is already the standardized physics processing API designed from the ground up to be done in hardware.
It is already used in multiple versions of 3DMark, and all games that use the Unreal Engine 3, plus many more game engines that I don't know off the top of my head.
Combine that with the fact that all GeForce 8 and up video cards will gain support for PhysX, it really is ATI's problem, and a pretty big one at that. Nvidia made a very, very smart move in buying Ageia. Even if the 4870 X2 is faster than the GTX 280, wait for games that heavily rely on PhysX to start coming out, and watch the tables turn.
It is for this reason that I got a used PhysX card cheaply on e-bay.

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