Well, now that all the "pleasantries" have been dispensed back and forth...
On the surface, this is a very interesting topic.
We all know that hardware companies have various pull with developers.. either directly or indirectly, and in the case of NVIDIA it's always been both. Indirectly from the standpoint of things broken in their API, developers will usually try to avoid by recommendation.. and directly for cases of things like 3dmark, Messiah, Dronez, Tribes2, Aquanox, etc.etc.etc.
People can try and BS their way out of this reality, but it is true and you'll only be joshing yourself and no one else.
There is nothing wrong with a hardware manufacturer offering additional support, financial capital, lots of support resources or similar to developers in order to further push a technology of their products. It's done every day and has been the case for the past 10+ years (3dfx + many, NVIDIA + many, etc.etc.).
Now on the topic of compressed textures and their usage as more than simple bandwidth saving measure versus using them for actually *increasing* texture detail? I don't think one can make a factual case for NVIDIA's involvement (or lack of involvement) either way since this has never been a showcase or detriment for their hardware... but instead just a supported feature.. thus "neutral."
In a nutshell, it's not a wise business ethic to strongly urge and finance extra support for a technology unless there is some chance of return on investment. Obviously, there are costs associated with steering developers one way or another and these costs need to be justified.
In the case of S3, pushing S3TC was a singular designating feature at the time that would show definate return with increased S3 product sales as they were the sole possessors of such technology... but later licensed to others.
NVIDIA was high on the pixel/vertex shader wagon for a while, but now it's old news and no longer should be cost absorbed since ATI cards have this technology. Luckily a few developers were able to get the push from NVIDIA to emphasize this past "unique" feature in games like DroneZ, Aquanox, and Morrowind.
So for NVIDIA to push/tout S3TC or compressed textures.. what would be the payback for the company? And why isn't equal pressure put on ATI or other companies that support various methods of texture compression? Wouldn't all companies stand to profit from this? So this is truly what it comes down to.
And as already mentioned- it's this combined with the fact that developers are either: a) lazy, b) incompetent, c) disinterested, d) targeting a model platform with poor or little support for said feature, or e) all of the above.
Just my $0.02,
-Shark