No, nVidia's support of it is. TR:DoA may not be "next gen" by your standards, but it uses a lot of DirectX 9 shaders, and they kill the FX. Valve has done benchmarks with HL2 and both cards, and despite them working with ATI, they are not the only people to realize the FX has some serious problems. And no, it wouldn't have taken too long to implement full DX9 compliance, you don't have to start making an engine for DX9 from the bottom up to fully support it.
Here's a link:
http://www.techreport.com/etc/2003q3/valve/index.x?pg=1)
If you don't believe Valve or any of the other new benchmarks floating around, like the ones posted above, you may believe John Carmack, founder of id software, and the undesputed master of 3D graphics programming in the industry:
Hi John,
No doubt you heard about GeForce FX fiasco in Half-Life 2. In your opinion, are these results representative for future DX9 games (including Doom III) or is it just a special case of HL2 code preferring ATI features, as NVIDIA suggests?
Unfortunately, it will probably be representative of most DX9 games. Doom has a custom back end that uses the lower precisions on the GF-FX, but when you run it with standard fragment programs just like ATI, it is a lot slower. The precision doesn't really matter to Doom, but that won't be a reasonable option in future games designed around DX9 level hardware as a minimum spec.
John Carmack