Well, first of all, because of displacement mapping, most new video cards are going to support N-patches, at least in hardware.
Personally, I really don't see any need for N-patches...they are just a shoddy subdivision surface implementation. Perhaps if there was some better interpolation done, they would be more viable. Right now the problems (and the need to fiddle with meshes) just seems like too much hassle for most game developers to bother.
In particular, N-patches will almost certainly be done away with in lieu of more flexibile HOS techniques. Since it appears that RT-patches will never see support (apparently game developers didn't like them as much as I thought they might), and Displacement Mapping is only good for rather specific instances, it may be a short while before we see a "good enough" HOS technique. Perhaps the rumored "Primitive Processor" that didn't quite make it to the NV30 will fill that gap. I'm willing to bet that something similar will.
In sum, I feel that N-patches will end up like EMBM. It will be sort of an, "Hrm, that looks kinda cool." feature for a little while, until something better comes along. After all, every mid-high end video card out today supports EMBM...but does anybody use it?
Update: Despite hardware support for N-patches, whether or not that support will be exposed is as yet unknown. As an aside, does anybody know if the N-patches support is exposed in the Parhelia's drivers at the moment?