Soccerman-
"are you saying they just slapped on a programmable DSP chip and designated it the T&L unit?"
By reading what they have said about the limited "flexibility" of current hardware T&L over and over, it does give me that impression. I'm not saying that is what they are doing, just the various comments that they have made makes it sound that way.
"3dfx will NOT do something so stupid as to have crappy T&L speed.."
I could spin it the other way and say that a fully programmable part would be able to offload far more operations then a standard fare hardware T&L unit. With a non dedicated chip, or unit depending on the design, you could also offload IK in theory(well, in theory you could utilize the gfx card to run the whole game with proper API support). Of course, the actual T&L performance would be quite a bit lower then hardwired dedicated parts.
"EDIT: Benskywalker, if 3dfx had a video card with superior T&L, but less fillrate, would you get it? I'm guessing no, becuase AFAIK you like OpenGL right?"
If they had the most powerful T&L unit and OpenGL drivers comparable to nVidia for visualization applications I would definately chose it over the competition. I'm not too terribly concerned about fillrate, though more is nice to have, I'd much rather have faster yet hardware T&L.