I agree, there are some alternatives for achieving the same effect, like cleverly placed bump mapping. But as you said it yourself, it requires more effort for an inferrior result.
All I'm saying is that we should give it moretime. It's still a "new" technology in a sence that game devs have just started using it, even tho Ati has been promoting it for years. I'm pretty sure there's much much more to follow.
I'm not saying that the feature is pointless, or that it shouldn't be used and pushed forward. I know it very well and I use it almost everyday when I'm modeling (offline, in 3dmax),
but it was not really applicable until now. Not in a way that was worth the effort of implementing all the underlaying system in the game engine, specially considering that you would have to create the normal version for those cards that just can't use it anyway (no support, low performance...). An environment that was supposed to use tesselation, and which relies on tesselation in order to create any detail, would just suck without it. Just like Heaven demo sucks with tesselation dissabled. So you have to add the details, want it or not, and tesselation would always have to go on top of that detail, making the scene around 3x more complex than without, hence producing a performance drop.
And about giving time... I'm not a believer of that anymore, we've used that "excuse" too many times with too many things in general (DX9 in te past, DX10...). They've had the time with Dirt2, it's been an AMD game since long ago and delayed the game even further to release it DX11. IMO there's very little more they can do performance wise, and again, IMO they are not using it too much either. The Radeons are supposed to be able to create 850 billion tesselated vertices per second. There's not that much on Dirt2, that I can assure. What most people apparently overlook is that although tesselation is a far faster way of creating geometry within the GPU, you still have to process, lit and texture that new geometry and it has an almost comparable performance drop to adding so much detail in the first place. You skip the geometry step but you can't skip the rest of the pipe...