I still cannot get behind your idea that nVidia doesn't know the properties of the materials involved.
What I meant is that nVidia goes by what TSMC tells them the properties are. After all, TSMC is the one that develops the fab, manufactures nVidia's GPUs, and gives nVidia feedback on the production process. The materials don't operate in a vacuum, so nVidia can't really study the properties without TSMC's help. Even if nVidia did have its own fab, it wouldn't really help them, as their fab may not perform the same as TSMC's.
As my previous post should indicate... yes they use logic to make decisions, and as you say, there are logical reasons for choosing high lead bumps.
Hindsight is always 20/20.
If nVidia knew beforehand that a large part of their GPUs would die before the warranty was over, and it would cost them millions of dollars to service them, do you really think they would have chosen this material? Ofcourse not.
I can only say that I appreciate it when companies take their responsibility and replace broken hardware free of charge. Intel did the same with the Pentium fiasco back in the day, also a problem on a very large scale.
I was disappointed to find out that AMD did nothing about the Barcelona TLB bug other than a performance-sucking bios workaround. They should also have taken their responsibility and replaced the CPUs with a fixed stepping free of charge.