Actually, the performance that could be gained from the EDRAM would be quite substantial. An example of the difference the EDRAM would make would be something like having CPU with 2 MB of L2 cache (even though it can't fit a whole program) vs no cache at all, even if both run off of a 1.6GHz FSB/dedicated memory lanes on DDR3 (hypothetical processors, and I understand the latency issue). You can immediately see how much more a relatively small piece of very, very fast memory can affect overall system performance. Basically, the EDRAM would make an otherwise memory bandwidth-limited game get virtually free bloom, AA, HDR, post-processing effects, et al. along with faster intermediate rendering stages (such as depth preprocessing).
But as an earlier poster pointed out, the main problem with supporting the EDRAM is because none of the popular APIs on the PC (DX, OGL) currently can separately deal with a specialized piece of RAM, because the memory space is abstracted out. This is probably the main reason why it was taken out, since all existing games wouldn't be able to deal with it. (although, if they segmentated the screen framebuffer directly onto the EDRAM and away from things like textures, off-screen buffers and FBOs, then it wouldn't be a problem at all...but I suppose the benefits are too limited to be of value)