Yes, this is great for consumers. I just find it pretty funny, you know, that others have suggested that devs line up at nvidia's door to do everything such as physx for free. All of these deals since the TWIMTBP and AMDGE programs have involved contractual obligations, nobody does this for "free". Even dating back to Crysis and Crysis 2, which were both TWIMTBP, those product tie ins involved millions of dollars. Money makes the video game industry move.
That said, the competition for developers between AMD and nvidia creates winners for all consumers. I'm particularly excited about Watch Dogs. If Nvidia can create that as a free bundle for their cards, i'm particularly excited - it looks like a fantastic game.