It might not be enough to close the gap to a 460 in tessmark, but In a game I pretty sure it would.
I'm pretty sure it wouldn't.
Let me try to explain, and again, please try to work with me.
You understand how a pipeline works, roughly?
Well, basically you start off with a bunch of vertices...
You pass them through the vertex shaders, three at a time, for a triangle.
Then these are fed to the triangle setup and rasterizer logic, which then divides it up into pixels and fires off the pixelshaders.
So basically:
vertex shaders -> triangle rasterizer setup -> pixelshaders
Now, tessellation comes in... For each triangle, you can apply subdivision into smaller triangles... So we insert the tessellator:
vertex shaders -> tessellator -> triangle rasterizer setup -> pixelshaders
Now, here's your problem... The tessellator on AMD hardware is still connected to that single triangle setup unit. But now a single triangle may generate tens or even hundreds of triangles... There is your bottleneck. You can't feed them to your pixelshaders quickly enough.
It doesn't matter how fast your pixelshaders are, they're not being used anyway! Which is why in extreme cases we see a 5770 getting the same framerates as a 5870.
nVidia has instead done something like this:
vertex shaders -> tessellator ->
-> triangle rasterizer setup 1 -> pixelshaders
-> triangle rasterizer setup 2 -> pixelshaders
-> triangle rasterizer setup 3 -> pixelshaders
-> triangle rasterizer setup 4 -> pixelshaders
-> triangle rasterizer setup 5 -> pixelshaders
-> triangle rasterizer setup 6 -> pixelshaders
-> triangle rasterizer setup 7 -> pixelshaders
-> triangle rasterizer setup 8 -> pixelshaders
-> triangle rasterizer setup 9 -> pixelshaders
-> triangle rasterizer setup 10 -> pixelshaders
-> triangle rasterizer setup 11 -> pixelshaders
-> triangle rasterizer setup 12 -> pixelshaders
-> triangle rasterizer setup 13 -> pixelshaders
-> triangle rasterizer setup 14 -> pixelshaders
-> triangle rasterizer setup 15 -> pixelshaders
Now your tessellator can output a lot of triangles in parallel, and you can still feed your pixelshaders!
It really doesn't take anything all that out-of-the-ordinary to get the AMD tessellator into stressful situations. Things can go VERY bad, VERY quickly.
In fact, using geometry as low as possible, and blowing it up to as much detail as possible is EXACTLY what's so good about tessellation... With AMD you cannot do that, you must always feed it reasonably highly detailed geometry to begin with, so that not too many triangles have to be added by the tessellator, and you're not bottlenecking your precious triangle setup.