Couple different things-
They, in any way you can imagine, were *not* the good old days. I'd like to play this game, but I need a RRendition; I need a custom OpenGL renderer to get this game working, this game says it supports D3D, but it runs sub 5FPS unless you put it in Glide. The terrible old days were insanely bad. Once the industry standardized on D3D nVidia put everyone else out of business(everyone wanted their own format to win so they could dominate, nV pushed D3D and OpenGL). ATi followed whatever nVidia did, it kept them alive(although they were never competitive until the bought out ArtX and they gave them some actual engineering talent to go with their, at the time, solid management team).
Real time ray tracing kind of sucks, rather in a huge way. Ray tracing does reflections very nicely, everything else it is *terrible* at. All your shadows will be razor sharp, good bye dust/smoke/haze. There is a reason we don't do real time ray tracing, mainly because it's dumb. A hybrid engine that utilizes rasterization for most elements and only uses ray tracing for reflections is a smarter way to go(although, it still is going to have a massive performance hit for a relatively tiny improvement in overall graphic fidelity).
PowerVR- IT(they guys that made Kyro) aren't dead, not even close. They may end up with more of their GPUs selling this year then AMD, they just left the close to no win world of PC graphics. Every iPhone and iPad you see? PowerVR GPUs on board, along with a decent amount of Android devices. They aren't gone, they simply couldn't come close to going toe to toe with nVidia/AMD in the desktop GPU space(if they had been ready at the very start they could have blown everyone out of the water and they may be a monopoly today, but their rendering technique's advantages were less of a factor the further we advanced).