It made sense for AMD to turn down PhysX. They already are strangled by Intel because they have to license x86. AMD would then be in a position where they'd have to license PhysX from Nvidia as well. Look at how well licensing x86 works for AMD, compilers going for SSE2 instead of SSE4 and AVX because it's not an Intel CPU, the whole BAPCO/SYSMARK incident, lawsuits, etc.
AMD has been burned badly before by having to license things from their competitors. And in reality when you think about it, it's a really bad idea to have your main competitor drafting how a technology you are going to use is going to work.
However as for EA games being optimized for anything, it's sort of a joke. At best we will see games use more cores, but EA games are going to continue to be poorly thrown together, shady hack-jobs with frequent crashes and features that just flat out don't work. EA optimizing anything is like bragging about a new paint job on a Pinto.
Obviously we are going to see games "optimized" for AMD hardware, the console APUs are much different than the high single thread, low core count CPUs that games are optimized for today. However the thing I am wondering is if Intel will have enough power on their 4 core 4 thread machines to keep up with 6 or 8 heavy duty threads. We saw it with i3 for a while but it eventually fell apart and started to lag severely. The truth is that if anything this'll hurt people with 4 core, 4 thread Intels and older AMDs (like Phenoms, etc) but 4 core 8 thread Intels, FX 6300 or better will do just fine.
I do hope that this does mean we're going to see much improved instructions for AMD CPUs. There's a massive discrepancy between performance gained going from Windows to Linux when you're on Intel and AMD, the Intels usually barely improve and the AMDs get much, much faster. Hopefully EA is going to work to rectify this, and they should, Jaguar supports AVX, SSE.42 and lower, and most of the other new instructions.
I would just be delighted if EA started shipping enhanced versions of their games with AVX, SSE4.2, etc enabled, much like we saw a 64-bit version of Crysis back in the day. It'd make a huge difference (more so on AMD than Intel from my experience as AMD usually doesn't use those instructions thanks to shady compilers but Intel usually uses them).