Cg doesn't support PS 1.4, one of the great features of ATIs DX8.1 cards..so right there the compiler is not getting the best performance out of R200 class cards, while DX9 HLSL would
yes, i know Cg can not support ps 1.4 right now although they had promise there wolud be a ps 1.4 profile in next version compiler .
but Cg was used for coding the shader code in real game, that is meant the relation between some(many? ) ISV and NVIDIA is ok. if NVIDIA is ok on this, i(we?) think ATi should be ok on this too no matter the game developer use Cg, HLSL or GLshading .