No individual or institution can rule the world.

What I was saying was that it drives some individuals crazy by trying to be the be all end all, just like the Church of Rome used to or the U.S. gov does today. Calling it Direct3D or even Direct X (which D3D is a subset of if I'm not wrong) is a misnomer anyway... it's an API so it isn't "direct" and it doesn't need to be for 3D only either. At least OpenGL was honest because it called itself OpenGL and OpenGL wouldn't have been a mishmash of high level and low level. I had thought what LongPeaks envisioned would've been practical in the long term, but correct me if I'm wrong on that.
Instead of a mishmash of high and low level API, OpwnGL got a mishmash of old and new, with the old making support for the new stuff crufty and too-often optional.
I meant more replication. You're right about neither will be emulated soon, but it's because of patents and the fact that the majority has high time preference. Perhaps if the video game industry were stripped of all patents and subsidies and had a crash like in the 80s, then the third wave would make it off ground zero flying. Nvidia, AMD, and Microsoft would go out of business rather quickly if their patents were repealed today and replaced with nothing later. Intel would probably have to divide itself in the same scenario.
If patents magically went away, we would be in chaos. Nobody's going to argue that our patent system is fine, but all their patents really do is prevent little upstarts from entry...into an industry that needs $1B/yr+ for survival. The many players right now all have agreements between each other due to the flawed nature of our system, but how many people will want to start a business that will need them to invest billions, for low potential profits? On the low-performance embedded side of things it occasionally happens, but once you reach the performance level of an iPhone from a few generations ago, it's just not going to be worth it. Patents have effects, but it's how the market(s) has/have shaped the industry that makes it the way it now is.
That's temporally very true. However, time preference has been driven up due to patents and subsidies (call them contracts if you wish

). I simply believe the pro-centralizing state has reduced innovation, has resulted in things being too uniform, and caused too many me-too products and driven up costs for society, be they producers (research and development), laborers, or consumers.
What reduced innovation? If you mean just PC GPUs, sure, but that's not because of patents, but due to it not being the trendy platform, due Intel acting monopolostically all these years (yes, they used patents, but they use whatever means they can get away with).
Nvidia's products actually were better before the patents got too strong and the fact they used OpenGL while ATi got off the ground by following the pro-IP MS's top-down closed minimum specification shows that perhaps the subsidies and IP nvidia has been awarded has made their production worse.
No, it went the other way around. MS had people from NV, ATI, S3, Intel, SiS, and probably some others, and unlike with OpenGL, they needed to hammer out features ASAP. ATI didn't follow MS. MS happened to decide that the way forward ATI was taking was a better one.
And, everyone had their fumbles. nNVidia, at the time, was very much not innovating the right way. The GF FX sucked because it was a VLIW machine going against a superscalar machine*, and was designed around a continued trend of adding texture map overlays, as opposed to moving more and more towards shaders. It wasn't ATI following MS: it was nVidia not going the direction the rest of the industry was. And, what did they do? They turned around, and were kicking ass by the 7000-series, and the current DirectX and OpenGL shader functionality is based on their own technology (Cg). Since the FX, they may have had some issues with power consumption, but have making great strides, with new features, and fundamentally new and different designs, that have been made to serve the wants of the market(s) they serve.
Some of it is human action, but the pro-IP, pro-public-private subsidy state has made things for worse for individual happiness because the state drives individual greed and makes it long term when it could only be short term without statist-corporatism. I believe nvidia has gotten more patents and contracts in recent years. AMD and intel were kept alive by regulations, one via patents and both benefitted in the long run from "anti-trust" regulations.
Without all of that, we'd have nothing but monopolies, though. It's a flawed system, but either IBM or Intel would own everything, without it. We've already had robber-barons, we've already had corporate towns, and we've already had cooperative non-innovating monopolies and oligopolies. We're getting innovations at a pretty fair clip, today. Game makers are slow to use them, and most games may not use them in a way you'd like (for that matter, I don't like how they're doing it most of the time, either), but that doesn't mean it's not happening, or that patents are stopping them.
While AMD may be all but required to live by regulations, they manage to keep going without having to rely on that, most of the time, and have excellent cutting-edge GPU technology, easily rivaling nVidia's. nVidia has courted the business world better, but AMD is no slouch, there, and both companies are in a league of their own, for the moment. But also, note that it's for a moment. PowerVR decided to bow out of PCs, due to the risk (without a high-performance 'halo' product, they were having a hard time of it, and embedded people were already loving them). Intel
will be competitive, at the high end (Quadro/Tesla and Fire*), given time. Of those companies with good GPU tech, there is plenty of innovation, plenty of markets, and no one is stuck on the top or bottom, without competition to make them paranoid.
* superscalar with VLIW execution units, ironically, for the comparison.