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ATI is like that depressed person who takes Viagra to get his dick longer or something.
Physics processing on board you say? An interesting, if not useless, feature.
I don't understand why they didn't make a nice sized, affordable card like the 8800GT with their new 55nm process. Instead we get this monster which is likely trying to compete with the 9800 line.
Onboard PPU will free up cpu threads to help stream assorted data. This can greatly cut down on loading times and and increase FPS.
They already have, the HD 3870 (~$250):
The 8800 GT kicks it's ass though
The issue with the onboard PPU is no games support it right now. All we have is a few games that support the PhysX crap.
Last I checked Intel bought out Havoc and has put all plans for physics processing on GPUS on hold to mess around with AMD.