"It seems that ATI has optimized their card to give a better benchmark in Quake 3, not optimize the card for the Quake 3 engine."
H]ard|OCP made no such accusation, those are your words. Here is what they said:
"Now whether or not this is seen as good or bad, you still get the elevated performance when running Quake 3."
Note, it says better performance, not better benchmarks. Creating optimized builds of games is certainly not rare. Matrox released Quake specific drivers a while back. 3dfx always had quake specific drivers as well. Also, why has no one else seen or heard of this file? I'm sure it exists, but a user has to knowingly get the file first (anyone else seen this? Anand, Tom?) and put it in the Quake directory for it to have any effect, making it very ineffective as a tool of deception if that ever was ATI's goal. I can assure you it is not installed automatically by the ATI setup CD.
The RAMDAC issue looks like plain false advertising. However, this issue only affects people running extreme resolutions and has no affect at all on performance. A 350Mhz DAC can drive 1600x1200 at 100hz and 2048x1536 at 85Hz. How many people have monitors capable of more than that? As with power supplies, it's quality over quanity for RAMDAC's.