My two cents:
First of all, the main reason I didn't like MSAA on GF4 was because it had nearly the same performance hit as SSAA, but gave you lower quality. The GF4 loses about 70% performance with MSAA, and SSAA should only lose a bit more than 75% performance on identical hardware. However, with the 9700 MSAA is much faster, so we're talking about 6x MSAA at 1600x1200 or 4x SSAA at 1152x864 with about equal, very playable peformance. I'd choose the former anyday. The same situation didn't exist with the GF4, however.
Thus, I think MSAA is very good when done properly (i.e. low performance penalty).
However, SSAA will still have significant advantages, even with ideal texture filtering.
First, you have alpha compare tests. Now, Chalnoth, I have heard you repeatedly say you can just use alpha blending instead. Do you know what grass looks like with alpha blending when you're up close? It's a blurry mess, and doesn't look like grass at all. Run the SS:SE demo - duck and look at the grass. With an alpha test, you have sharp, rounded edges for leaves, like in MOHAA, Operation Flashpoint, the Nature test, and many other games. You get the illusion of very high polygon counts. The only way to avoid the blur is to use a very high res texture, which is totally unreasonable.
Next you have pixel shaders with CMP/CND, which result in the same hard edges. Some papers have suggested the idea of a smooth-step function rather than the discontinuous CMP/CND, but that needs to have a dynamically changing slope according to how big the texture is relative to on screen pixels, or you get that same blur when close. You then wind up with a complex pixel shader that may reduce performance to SSAA levels anyway.
Chalnoth, you were also whining about how the 9700 doesn't have true branching in the pixel shader. Well, if you were using dynamic branching, you'd have aliased edges everywhere with MSAA, except for certain situations. You could program around it, but again it's quite hard.
You say:
Nothing that SSAA can accomplish for textures cannot be accomplished by better texture filtering
You are grossly simplifying the situation. Above I have given you situations that are very hard or impossible to anti-alias with MSAA. The only real solution is to use SSAA when you have to, which I think the 9700 does (unless it gets rid of alpha test edges some other way...).