Those 4 capacitors is most likely to be used for filtering purposes since the type of VRM used for a video card I suppose is a multiphase synchronous buck converters, same as motherboards.
The capacitors are there so that the output voltage to the GPU has minimal ripple. Not sure what the 8 capacitors at the back is for but its also there to smooth out the DC output.
Anywho, Ive built DC to DC converters before and yes they always blow up (mostly the MOSFET or whatever transistor is used is the one thats often the one to bite the dust) when going over spec e.g raising the input voltage outside of spec or putting a load outside of spec. However most DC to DC converters tend to have some sort of voltage/current or even a power limiter incase they go over the spec.
These limiters often use some sort of micro controllers, and Im guessing that with regards to the GTX590, nVIDIA's drivers sets the values/limits via software for the micro controller. So instead of having such power limiters programmed outside of the driver influence, its incorporated within the driver so that these "limits" set by the limiter can be controlled easily via software without having to re-program those micro controllers individually.
From what I can see, the GTX590 has no issues at stock (remains to be seen) and thats where it counts the most. This product is not a failure because it's set out to do it what it was built to do without failing. Within that list of what it was suppose to do, overclocking and overvolting is not part of that list.
In engineering there are always trade offs. nVIDIA chose to build this card to be physically smaller, quiet card than its competition while providing decent performance (
ref - xbitlabs). Where as the HD6990 was aimed at pure performance. Because of the physical limitations, and from what I think is a budget constraint since two low voltage GF110 chips are bound to be more expensive, corners were indeed cut and all engineering projects are like this.
People need to understand that overvolting and overclocking is never something that's guaranteed hence YMMV. Some video cards (referring to stock cards from either IHVs and not the AIB partners) are over engineered in some respect but this isn't so that it allows overclocking headroom which is often unintentional. That's rarely the case. Arguments like "its an
enthusiast product so it must overclock(old trend) and overvolt(newer trend)" doesn't make much sense unless the IHV or the AIB partners clearly advertise that it does.
In this case, Asus is clearly wrong for falsely advertising and hence their move to clamp the voltages via new BIOs.
So unless a legitimate hardware site or the IHV/AIBs state that there are issues, clearly explaining that this card is unfit to run at stock settings, the product itself is not an engineering failure but rather the execution of launching this card was a failure in the sense that the CDs that come with the package caused some cards to blow up when driven to the extreme.
Its quite entertaining in the fact that users nowadays expect overclocking and overvolting a given in video cards and if the card somehow dies, its the IHVs fault for having "weak" VRMs and etc. Compare this to , users about 6 years ago, most thought gaining about 25~50MHz from stock cards was like winning the lotto.