If you guys want to complain about NVIDIA holding back pixel shader adoption, don't waste your breath on the GF4 Ti cards, because that's a baseless argument. The GF4 Ti cards had PS1.3, two versions higher than the GF3. They were released 3 months after DX8.1, so it's pretty absurd to say "well they should have added ATI's near-proprietary PS1.4 by then". You can't just throw in support for a new version 3 months before release, let alone a version that only existed because it happened to be what your competitors made. They also weren't going to delay a chip that was nearly complete just because ATI had slightly higher feature support.
The real cards that have been holding the adoption of pixel shaders back are the GF4 MX series. For evidence, go look at the forums for Deus Ex: Invisible War, Thief: Deadly Shadows, or Splinter Cell Pandora Tomorrow. These require a meager PS1.1 support, and there are still people complaining, because their GF4 MX's don't support it. These consumer complaints are what discourage developers from implementing new features.
While the Radeon 9000 and 9200 have a similar "lack of latest PS version" problem as the GF4 MX line, they aren't going to suffer the same disdain because as Dave pointed out, there's not going to be a PS2.0 based console system. Without a console systme like that, there won't be a flood of games requiring PS2.0, probably ever. Most games are going to be made for both the PC and XBox, and as such will probably only require PS1.1 on the PC. Games will increasingly support PS2.0 for better features and faster execution, but they will still run on GF3/4Ti and Radone 8500/9000/9200s. By this same logic, the NV30's utterly horrible performance in PS2.0 won't be a complete disaster for the industry as a whole, either.
We'll have to wait and see how well NVIDIA and ATI support SM3 in their value products in the next cycle to know what will really happen with SM3.0 adoption. If the trend follows from the R300/NV30 generation though, the ATI budget cards may only run PS2.0, and that would be as bad as the GF4 MX has been for the PC market. Meanwhile NVIDIA would release budget cards that support SM3.0, but perform like dogs. And of course, the people who buy sub-$100 graphics cards to play games can only hope that the games run, not that they run well.