Which is far more likely to happen if people start supporting PhsX. Once businesses see there is a market they will support it. I think AMD doesn't want to put resources toward GPU physics calculations b/c they sell CPUs, they see the market as saturated, they do not see people buying other hardware to get that support.
I don't think so, to be honest.
With CPU physics, AMD is going to lose anyway. Intel makes faster CPUs.
With GPU physics, AMD would at least be able to outperform Intel's CPUs. So I don't see any reason for AMD not to want GPU physics. GPU physics could make the AMD platform as a whole more competitive, even though their CPUs by themselves can't compete.
I think the real reason is that Intel owns Havok and Intel doesn't want AMD to outperform their CPUs. I have this funny feeling that Havok with OpenCL support will magically be released at the same time Larrabee hits the market.
Until then, Intel has no use for Havok with OpenCL support, so why would they release it?
AMD just happens to be between a rock and a hard place, with both its major competitors each owning a major physics API.