Its getting more press because it has broken years of stagnation on the api front, and is genuinely awesome for its users.
I fail to see how blowing newspapers and jello are earth shattering implementations of physx in bl2 and batman. As another poster said physics is held back by its proprietary nature. It can't change gameplay so its always going to relegated to fluff that you would not notice if it was missing. We are still waiting for the dust to settle from mantle. No one knows if it will always be proprietary or not, buy physx is staying that way.
Just so you know, since you brought this argument up, GPU accelerated physx is only a small subset of what physx does; it is actually a full blown physics engine that isn't proprietary - it works on all major gaming platforms. The actual physics engine portion is widely used and works on all hardware. That includes the xbox 360, ps3, pc, windows, android, you name it, physx works for physics engines, and it is widespread in use with nearly 500 titles. I could name an endless list of console 360, ps3, PS4 and XB1 titles that are using the physics engine portion of physx. Now that doesn't sound proprietary to me. You're focusing only on the gpu accelerated particle features, which does require cuda hardware. Again. Small subset of physx.
Conversely the open standard which AMD proposed - openCL physics - hasn't gained steam because AMD just doesn't have the resources to create developer tools that are compelling or desirable. Therefore it hasn't gained steam, despite having been around forever. This is what nvidia excels at IMO, software - they create developer tools that are easy to work with based on what i've read and because of this, they gain adoption. Physx has done very well in this respect, it is used in a ton of titles. Even looking at Intel's Havoc - it is all about developer tools. Just throwing something at a developer and stating "hey this is an open standard" means nothing. How does it make their job easier? How does the open standard make their life or job easier as a developer just by merely being an "open" standard? That does nothing. It seems in this case that the open standard failed. I could name more open standards that failed because of poor developer tools, but I won't get into that. This is not meant as any sort of slight to AMD, but open standards in and of itself does not make something compelling. Yet, since you brought it up, physx isn't fully "proprietary" either since the physics engine portion works on well....everything.
And on that note, as mentioned earlier - some implementations of this GPU particle physx (which requires CUDA hardware) are excellent while not all are. It isn't meant to be a pre-requisite and it never has. It's merely a value add. Oddly enough, Mantle is also a value add for AMD users. I think both respective technologies in their proprietary aspects (again, i'm only talking of the gpu accelerated particle features of physx, not physx in the general sense) are value adds that are good for AMD or NV users respectively. It's all in the eye of the beholder. They're both good in different ways. If you like one or the other, by all means, buy based on what you like. Now I'm not a stickler for physx, but I buy NV based on other reasons which I won't get into. But the value adds do mean something to a lot of people.