Let's say you are a smaller player in the market. You develop a new hardware that would require a totally new API to take full advantage of. You're options are to create a proprietary API or go through the standards committees.
If you go the proprietary route, you have the problem of convincing developers to USE your API. But since you are a minor player with small marketshare, there will be no overwhelming reason to target your API. You have a huge problem convincing developers and consumers to buy your hardware platform.
Therefore, your only route is to change the standards through the standards committees to suite your product's features. Then, the developer adoption issue is taken care of, because developers by and large have already adopted the standard.
Now let's say you are first to market or a market dominating player. Because you have so much market share, you can pretty much drag developers along, therefore, the pressure to push everything through a standards committee is less. (BTW, Carmack is in the same position. He can code for the average lowest common denominator TNT2/V3 "standard", or he can drag people kicking and screaming to the level of performance he wants, forcing them to upgrade. When you are in a dominant position, you can force people to do what you want)
The downside to standards committees for vendors is that you don't always get what you want. You usually get a "lowest common denominator" or watered down spec. Thus, a huge risk that your super-duper feature ridden hardware will go unused. That's why hundreds of OpenGL extensions exist. Evolution is also alot slower. Sometimes, a dictator is a useful thing (e.g. MS, Intel) in driving the market to standardize quicker, instead of political bickering. Remember sound cards before DirectSound?
But make no mistake about it, the standards committees have nothing to do with the "greater good" or altruism. They are about politics and marketing. It's sad, but most companies don't care about interoperability. The DVD standard, for example, almost disintegrated at one point as each vendor tried to add their own proprietary stuff. Even though it is in their financial best interest to have one standard format, to save on the added marketing expense of promoting your own format and distribution chain!
I sit on 2 standards groups. Most of the people there are technogeeks. However, the only reason I am on the group is to make sure the standard reflects our company's product features and to use the fact that it is a standard to market our product against a Microsoft one that is proprietary, using proprietary as a epithet.
The fact that people keep missing, is, regardless of the inevitability of OGL2.0 and DX9 shading languages, developers need tools *TODAY*. NVidia simply produced a compiler for DX9 HLSL that can compile shaders for OGL and DX for todays hardware. It does this by telling you to limit the size of your programs and to use a subset of the full language.
There is nothing NVidia specific about Cg. Cg should compile and run under DX9 when it comes out. All NVidia produced was a tool. ATI should produce one also.
Ideally, each and every vendor should have their own compiler for HLSL which can produce OPTIMAL code for their platform, instead of using the generic DX9 built-in one.