You're reading it wrong. AMD claims that, in games, tesselation factors needn't be set so high as it punnishes the framerate without offering significant improvements to IQ. I don't think Nvidia was mentioned in the blogg once. A guy at AMD stated how the company thinks that tesselation should be used to benefit gamers the most. It really is as simple as that.
I have yet, to date, not found a game that can actually take advantage of the OH-MY-GOD-IT'S-INSANELY-AWESOME tesselation performance available with Fermi. See? AMD offered a solution that offers enough tesselation performance to match the tesselation used in modern games. AMD offered that performance over 6 months before Nvidia did. The reason to this is, amongst other, that Nvidia launched a new micro arch. while AMD reworked and tweaked an existing one. Of course tesselation performance will improve with AMDs next architecture, but that doesn't mean that AMD was/is wrong with Cypress and Barts. Tesselation is a new feature, barely used at all - why should any company waste die area for something that wont be used much anyways?