Some random thoughts on the subject...
One thing i find disturbing in this article, and it should be clarified. There is no NSR engine in GeForce2 GTS, nVidia just started promoting the Dot3 per-pixel lighting feature of (original) GeForce as a "new shader processor" with the GeForce2 GTS. Any programmer will confirm that D3D capabilities reported by the driver are *identical* on GeForce256 and GeForce2 GTS.
But Dot3 per-pixel lighting is certainly a feature which should be embraced by the devlopers a lot more, it's importance must not be downplayed no matter how nVidia tries to market it. As most new mainstream accelerators support it (cards based on new nVidia chips + all revisions of ATi Radeon cards), I see this as an every way superior alternative to currently most widely used game scenery lighting method, light mapping. With per-pixel lighting you also get free bump mapping, all in a single pass. Plus there's none of that "three meter sphere of light" feel you get on all current games (Quake3, Lithtech and UT engines) using light mapping.
Q&A was correct about Dot3 lighting, implementing it is very simple and straightforward. And with DX8 having an abstraction layer for per-pixel lighting operations things will just keep getting simpler.
Hardware T&L on the other is not a simple thing to implement properly. In order to optimize a game fully for hardware T&L, developer must obey certain limitations in terms of geometry manipulation. But as I've said before, doing T&L on hardware certainly limits you more than doing it on software, but so does doing polygon filling and texturing on hardware. Do we have any software polyfilling/texturing games out there any more? In a few years the situation will be same with AAA+ titles doing exclusively software T&L.