Theres a couple more triple A titles coming out that use physx atleast as much as batman - possibly more...
Personally I think it added nicely to the atmosphere in batman - even tho most of the effects used could have been done fairly well on a CPU only physics lib... except maybe some of the cloth workload in some sections.
PhysX made the frame rate choppy and uncomfortable even on the 'Normal' setting in Batman; that was with a GTX260 @ 1920x1200, max settings. It's just not really acceptable for a few bits of fluttering paper. Installed a 5850 yesterday and won't be looking back.