I suspect Nvidia is about as likely to open source its 3D code as Microsoft is to open source Windows, perhaps less. That's the price they perceive for working with the Linux community on open source Nvidia drivers: Zillions of dirt cheap Nvidia knockoff cards using that open sourced code, collapsing Nvidia sales, and miniscule sales to the Linux folks.
A better approach might be to recognize that 3D is not needed for most day-to-day home, SOHO and corporate desktop work. In fact, the extra cost that 3D adds to a card is just empty expense for those markets. These people stare at monitors all day; what they want are great 2D displays. Work with Nvidia to improve the nv driver to deliver the best possible 2D display. Forget about the gamers. Gamers will go where the games are.
Actually my monitoring of the situation is different than what you seem to state. nVidia did post a message on why they cannot open the source of their driver. It is due to licensing restrictions of code on product not developed by them. As stated by someone else, it is a tangled mess. I have also read that they have modified their license to allow their binaries to be included with distros. How this affects Fedora and others we will have to wait and see. Lawyers and Microsoft love IP violations. Microsoft is now promoting FUD for these issues.
From the kernel point, I read an article in the last two days about making an API or plugin mode to accommodate these types of situations.
nVidia makes money from the chips in the cards, so they make money from the cheap knock offs as well. I didn't find price differences that much between cards when I went looking.
Now in regards to 3D at home, you mustn't have kids or play games. Try to play Tux Racer or Enemy Territory without 3D support. Bang, you are dead. Heck, I have had issues with 3D support for software at work. I fought for two weeks to get 3D working with my ATI 7500. I missed working on a project because of this. I have a PS2, but there are so many games that are on the Internet and available for Linux that it doesn't get used much.
Remember, the goal of Linux in many aspects is to compete with the devil and that will require support for perceived requirements of the masses.
Most people that I know, take some time to play a few computer games on break and while waiting for other people.
From what I found in my experiences early this year. Both ATI and nVidia have closed source drives for their cards. Both required work with the kernel to install the necessary drivers. ATI required the removal of at least one or two packages (I cannot remember). nVidia didn't require any packages to be removed.
nVidia supported 3D within their driver. nVidia has moved to a common code for both Windows and Linux. This means that they will have almost the same features on both platforms. What a simple concept.
ATI did not support 3D in their own driver and after days of searching did I finally found this on their site. They did not provide any support or feedback on their site in regards to this issue.
I have never required support or assistance with my nVidia card.
It could prove interesting as well as Intel is now providing a software package to assist in the installation of Linux in China and India. This could be a good thing.
http://news.com.com/Intel+more+active+in+desktop+Linux/2100-7344_3-5465225.html
The nice thing about competition is you have choice. Not what is wanted in the MS world.
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Robin Laing
