Of course it is to someone that offers "proprietary hurts consumers" in a sweeping, blanket, one-sided view.
In the world of technology, proprietary standards generally fail. It takes industry wide standardization for a new innovative technology to truly take off.
- VHS
- HDTV --> 4K, etc.
- BluRay
- USB 2.0/3.0
- SATA interface
- PCIe interface
You can have an eco-system that relies on industry open standards accessible to anyone - that drives innovation. PhysX is closed/proprietary. NV is the only company in the world that can drive innovation of PhysX and thus far they have failed to improve on PhysX. That means PhysX is already stagnating and not really evolving in real world games. It's becoming more and more obvious that unless NV makes PhysX an open-standard for everyone, it's never going to take off (unless AMD goes bankrupt and by default PhysX becomes the open-standard since 100% of discrete GPU gamers will be using NV GPUs). But even then it would only be 1 company, NV, driving innovation in PhysX. NV doesn't have the financial resources on its own to allow for amazing PhysX effects in all games. This is why we wait for 1-2 games that NV thinks will sell well before they actually spend any $ on PhysX. In other words, the developers themselves don't go out of their way to include PhysX in games - so it's totally dependent on NV marketing dollars to drive this feature.
The long-term viability of PhysX in its current form is questionable. As CPUs and GPUs continue to evolve and become more powerful to perform physics calculations/simulations, eventually an industry-wide open standard language/platform for physics simulation will emerge. PhysX in its current form is just a marketing gimmick to sell NV cards and as a physics simulation platform a fad. The whole premise behind Ageia physics effects was to make games more realistic. PhysX has not done this. In fact since the takeover of Ageia, not a single game that uses PhysX has approached the physics effects of Red Faction Guerilla, a pretty old game by now.
Unless real world physics effects actually impact gameplay mechanics, all PhysX is doing is adding superficial graphical effects into games. That's
not real physics. PhysX does not actually affect the gameplay, which makes this a useless innovation for a new physics standard in games.
The fact that you can tell PhysX effects in games actually shows that PhysX is a failure. Proper implementation of physics in games would make games more realistic and make them look less like videogames and more like real world. The PhysX effects do the opposite, you can tell right away where PhysX effects have been implemented which more often than not means they look fake/unnatural to the observer of real world physics. Maybe NV hasn't put enough effort into PhysX, but its current simulation of real world physics continues to be a gross exaggeration and an inaccurate representation of real world particle effects.