I would rather think nVidia might be relieved to shed the burden and the expense. (Kind of like 3dfx shedding GLIDE, in a way, except in the degree of market penetration.) At the time nVidia started work on Cg, D3d/OpenGL HLSLs were not even apparent on the horizon. Now that they are becoming a reality there isn't much need for nVidia to continue to invest in supporting Cg, IMO.
I for one would welcome nVidia shifting back to working with M$ along with other IHVs to formulate the APIs and the HLSLs as well. Consumers and developers both will benefit, and the irony is, so will nVidia.