It's a good thing that the games of the future will necessarily have more tessellation that magically works on Nvidia's current cards without requiring users to upgrade

and
only AMD users will have to upgrade for better future gaming performance, right?
This implies that there will only be 1 setting for Tessellation - "Extreme". This is doubtful, however, and the more likely scenario is that EA/Crytek will have low/moderate/extreme levels available for toggle in the game control panel. Gamers get more options if anything. Those with more powerful setups will be able to take advantage of more advanced visual effects (the same was true for "soft shadows", "HDR" lighting, "Motion blur", "Ambient occlusion" in games years before Crysis 2).
You completely misrepresent the argument of those against nVidia shaping the way games are developed.
As long as the game doesn't get delayed from its March 2011 release date, NV can throw in
100x more tessellation in its Extreme Tessellation setting if they want to sell 3x GTX580 SLI setups. As long as we have 2-3 varying degrees of tessellation application and the game doesn't get delayed, why is this a problem? I don't see how this makes gamers victims? It should only encourage AMD and NV to continue to improve tessellation in their hardware.
I agree with your argument that if extreme tessellation doesn't provide a worthy improvement in gaming visuals vs. normal level of tessellation, but it brings a severe loss in performance, then it's not worth it until hardware becomes quicker. However, we don't have any information on what levels of tessellation gamers will be able to choose in the game, or the implied performance impact. If NV hardware can run with exteme settings as well as AMD hardware can under normal setting, why shouldn't NV owners get the advantage of running at the higher quality setting? If the game only has 1 extreme tessellation setting though, then that would be a problem
