Most of the market works this way. Barely any bigger company is sharing technologies and helping competition. There is nothing new here and Nvidia works like that for long years.
AMD could make the same and maybe then they wouldn't lose so much.
Still no one cares and Nvidia cards are more popular because of many other reasons. AMD is almost only releasing rebranded cards in last years so I don't know what people expect.
Physix was very much of PS4 / XBone "exclusive" crap to begin with. It's good that it failed so badly thus far. Seems like nvidia managed to get it back on it's feet using this new framework though. Indeed it's a bad thing for the consummer. Although we should be looking forward to those new technologies, the fact that they are very anti consummer is a bad thing.