Testiculus Giganticus, the Parhelia's vertexshaders are technically quite well featured! They are fully conform with DX9's minimum standard for VS 2.0. Wether they might actually exceed this spec in some cases I can't say, it's been a while since I read the whitepapers. Unfortunatelly pixelshaders are only on the same level as Nvidia's NV25 series, they offer PS 1.3 compliance, since this level seems to be more or less the standard for most DX8 developers that should not be much a problem for the next generations of games though.
The ironic part appears to be, that judging from some theoretical benchmarks and test conducted, the advanced programmability of the vertexshaders (compared to other DX8 generation boards) doesn't mean a whole lot. They appear to have a significantly lower triangle troughput than an equally low-clocked GF4Ti, even though Parhelia has 4 VS units and GF4 only 2, which goes to show the number of VS or PS units on a chip has little to do with performance, the design of the VS or PS units is vastly more important than their pure number. Maybe that "problem" is due to not fully functional drivers, but it also might be that their vertex shaders are simply slower by design then competitor's solutions (Matrox does have far more limited manpower after all), while probably still being sufficiently powerfull for pretty much all upcoming games...
About FAA, an article about the propable algorithms used by Matrox would be very cool, and I agree that FAA is a very interesting and forward looking technology that shouldn't be ignored due to some early problems. Yet, while nothing has been proven without a doubt, a number of tests indicate that one reproducable flaw of FAA are edges that are created by intersecting polygons. Not sure if that is fixable through a driver update, may well be by design that FAA only AAs true polygon edges, we simply don't know yet. Will be interesting to find out...