I have read this topic on several forums and it was brought up that the new Unreal Engine does make use of this feature. There was some news item in fact months ago (before the G70 or r520 were released) where Tim Sweeney at Epic was saying that the NVIDIA card's would render the new unreal engine correctly while the ATI cards would have some type of incompatibility issues (or artifacts). I also remember hearing about this but not thinking about it at the time. Is it possible Tim Sweeney was talking about this SM3.0 issue????
edit found a related item: here's a blurb where Tim Sweeney talks about UE3 and displacement mapping
"With regards to "virtual displacement mapping" or what is known as offset-mapping, other than the normally expected nice bumpy edges of corner walls, will this software technology be used for other things like, maybe, bullet-holes on walls or enemies? Currently, what is virtual displacement mapping utilized for in UE3??
We're using virtual displacement mapping on surfaces where large-scale tessellation is too costly to be practical as a way of increasing surface detail. Mostly, this means world geometry -- walls, floors, and other surfaces that tend to cover large areas with thousands of polygons, which would balloon up to millions of polygons with real displacement mapping. On the other hand, our in-game characters have enough polygons that we can build sufficient detail into the actual geometry that virtual displacement mapping is unnecessary. You would need to view a character's polygons from centimeters away to see the parallax"
link :
http://www.beyond3d.com/interviews/sweeneyue3/index.php?p=2
There's a thread at HardForum with Brent Justice (HardOCP video editor) stating that one thing this would effect is "displacement mapping". His take is that nothing uses it now, but it sure sounds like Unreal Engine 3.0 will
D