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I vote "neither". IF PC gaming decided to go this route and require this additional increase in technology and cost, it would die, plain and simple. I've been a diehard PC gamer for life, but I'm nearly ready to dump it for consoles already (I place high hopes on Unreal Tournament 3), and if they added another few hundred in costs.....screw it. I'll stick to Linux on my PCs and my PS2 for gaming.
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With all that said: Welcome to the club, my friend.
PC gaming is becoming far too costly as software's hardware requirements force us to upgrade almost yearly. I'd be happy with a life cycle of computer hardware at a maximum of 2.5 years, half that of consoles.
And on topic: A physics card that's separate from the GPU is most likely going to fail with the rise of multi-GPU cards. (see 9xxx series nVidias) It could mean nothing to ATi or nVidia to simply include an extra CPU onboard that would handle 3D physics. Knowing those companies, they'd include such technology at little extra cost to squash Ageia's (and etc) products.
Jam it back in, in the dark.
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