"So Nvidia isn't just cranking up the tesselation without reason. It actually does make things look better. That is what you meant? I just want to make sure I'm getting it right. Never can tell these days."
This is why I question things so much. I want to make sure people understand what they read when they comment on it. Silverforce, you answered me as if I said the complete opposite sentence and it is confusing to say the least. We must read more carefully. I'll make the same effort.
I honestly understood it the same way everyone else did.
You can take the same argument for - let's say - Anti Aliasing. It would be trivial to increase AA to 16, 32 or 64 samples per pixel and yet noone does it. The performance decrease does not justify that theoretical increase in rendering accuracy. And it isn't even a given that we see it as an image quality increase as it would probably reintroduce/increase pixel flickering.
Tesselation is still in its early stages, game devs need to learn how to use it for maximum effect. Tomb Raider could have used it for more than just Laras curves, Crysis 3 could have used it more intelligently than on surfaces that are almost flat regardless.
As for the approach to graphics features, I'd say both are wrong.
Nvidia has an issue of trust with the game devs - why else are most of their features implemented in an eyecandy only way? Why is there no Portal 3 with PhysX? Or Splatoon?
And AMD lacks broader support, only a couple of game studios pick up their features to implement it. This is related to a lack of documentation, hotline support, public demo implementations. Stuff that makes it easier for gamedevs. Stuff that will also make it potentially more locked down to you as a service & hardware provider.