Because completely saying "**** you AMD" while mainly developing on AMD-based consoles doesn't really make sense?
While hardware accelerated PhysX has been tied to CUDA in the past (and CUDA requires NVidia hardware), it looks like that may change in the future as NVidia has hinted that they are interested in porting PhysX to other APIs like DirectCompute.
In fact, NVidia has done that already. The fur physics in Call of Duty Ghosts uses DirectCompute rather than CUDA..
So basically you're wrong if you think that hardware PhysX can't run on AMD based consoles.