One of their highest priorities at the moment appears to be to remove any 3rd party code running in the context of Apple processes. For examples, you don't need to look far: kext -> DriverKit/System Extension transition, hardened runtime, etc. The Nvidia driver breaking is just a consequence of that increasing lockdown. The simplest solution would be to allow nvidia's code to run in the context of core system and user processes again (kernel, WindowServer, just about any GUI app) which presumably is not palatable to them or they wouldn't have made the change in the first place. The alternative would be to farm this type of driver out into a sandboxed user process. (Nowadays this means DriverKit.) Aside from potential performance issues, this would be a lot of work, so it's probably never going to happen unless literally millions of end users start complaining.
This left the major computer vendors (Dell/HP/Apple etc) with very large bills due to the high failure rate of these Nvidia GPUs in laptops. It was right after this that Apple stopped using Nvidia, I've always assumed bad blood over this was a major factor.
The cost to Nvidia ended up in the hundreds of millions (based on charges one can see in quarterly filings from this time), the total cost of the failures industry wide is pretty hard to establish given laptop manufacturers weren't exactly in a rush to let customers know the extent of the issues...
https://www.macworld.com/article/1154456/nvidiagpu-macbookpr...