What you mean by mistake? Take a look at the timeline. By the point NVIDIA sold/licensed GDeflate to Microsoft, they had already the hardware decompression unit ready. "Hardware accelerated JPEG decompression" in Hopper rings a bell? They had deflate support, 2 years ago.
Well Nvidia talked about hardware LZ and deflate decompression at GTC 2021. Direct Storage came out in 2022. Not seeing any real opportunity to bamboozle the competition here.
Btw, are deflate and gdeflate interchangeable? How exactly does a hardware deflate decompressor help with DS gdeflate?