I would rather the developers getting the game right on day one than having to wait three or four driver optimizations to get a similar experience.
It helps that the engine in question isn't a shipping product, and all they released was a tech demo.
We've seen what the sausage looks like coming out on day one from publishers, and it's been noted that traditional driver updates carry a lot of the quick fixes.
It's not the situation I would prefer, either, but I do recognize that the teams that do this are good at what they do, and as fragile and arbitrary as the bespoke driver optimization paradigm is, I cannot at this time say that the ostensibly superior low-level methods have made things a net positive.
Nvidia, and AMD--I think--have too much on the line over this, and so they have an interest in trying again and again, and as we can see from the Oxide example, they can get it right in a decently small number of tries.
Some of that is motivation, and some of it may come from their central position that accumulates information about all the sorts of problems and mistakes that the fragmented and churning development teams cannot learn from one another or necessarily avoid repeating.
Publishers have apparently found a line far short of this that they are happy with, so I'm somewhat pessimistic as to where the crossover point actually is between the devil we know and the new shiny one.
Man-hours are finite and are better spent on new games (developers) and new features (driver team).
I'm sure there is someone in that mix responsible for quality implementation and useful features, the various sides have been tossing that ball back and forth for a while.