They have rejected it based on the sorry excuses of cards they have out for it. X700 series is horrible compared to say the 6600. The fact remains is that Nvidia will continue to have a sizable lead against ATI in the biggest market.
This kind of reminds me of Apple and Microsoft in which ATi is Apple and Nvidia is Microsoft, but without the Bill Gates factor. I feel in the end, Nvidia will prevail. ATi better watch out for their marketing strategy.