directx 11 is supposed to bring physics calculations on the GPU through a standard ATI that all companies will have to adhere to. So it actually seems like a good thing.
On the other hand, if DX11 is delayed that then means that the nvidia-aegia merger has more time to bear fruit, with nvidia placing its own physics engine in practically every computer (due to amd's lameness).
Havok is probably set to die in intels clutches though.
reading the article though, i don't see DX11 as being gone so much as NOT MANDATORY...
Thats a good thing, that means that the core OS will not require it to run, that is, it will have a lighter interface. DX11 as a separate install sounds spiffy, as it means that the OS will be lighter.
That or maybe it is being delayed due to taking longer to make...
Heck its inquirer, for all we know its a load of balony.