Nothing more than a re-chew of old gums. Whatever argument it is, it had been used on batman AA. Batman AA was a success, small group of programmers had created a game that was good at all fronts.I don't see anything really new in the game, but whatever they did with old tricks, they did it right, which is what matters. PhysX was one of those tricks they have used. The affect were nothing more than flying papers and leaves, but people were happy about the utilization of PC. Despite the fact that there are a few pro-AMD fanboys who kept spinning about PhysX, many AMD users were happy about the game and you really don't need a Nvidia card to play the game. Some found that there exists a parameter within its ini files which allows CPU PhysX look as good as if it is GPU accelerated. AMD users weren't the loser, AMD fanboys were.That is just wild conspiracy and conjecture though and if it was the case there would of been many ex-employees, developers speaking against this and expose it. How could anyone keep it secret? You build a successful developer relations through hard work, working with developers and being pro-active --not pay-offs, one may imagine.
Batman AC did not take long to develope, so I can sense that there will be a lot of recycle codes in it, and there is really no point of removing PhysX out of the original code. In fact, it seems they have developed on top of what they have accomplished with PhysX into another level, which is IMO worth looking at as PhysX can be executed on CPU if it is powerful enough. Comparing to good old dual core, I believe those with I7 or above will have a lot of left over CPU power for some flying papers.
One really cool thing about PhysX is its scalability. If you have seen the documentary of rocket sled, then you will have heard the programmer increase the number of particles of the bridge for fun just to see what happens. So it is possible to change from breaking into tens of pieces to millions of pieces which one variable change, what does it mean? It means, the stronger the GPU or CPU, the more move papers, without the need of massive change to game code. This is the true beauty of PhysX. You don't need a freaking 284TB of skin files to utilize the hardware, just a change of setting and done, enriched visual effects. If they code it (Nvidia, not game dev) right, it will turn any games that use PhysX scale dynamically based on the platform it operates.
Now name another physics engine that does that.