I think one of the biggest failings of wayland is that it requires so much duplication of effort between different compositors. Ideally, the compositor shouldn't have to care very much about which drivers the user is using for their graphics card.
That would require a single standard for communication with GPUs and the problem is that Nvidia is refusing to implement that standard.
Wayland doesn't care how you draw your buffers, and a custom EGL library as they already do, while gross as hell, is not at all a compatibility problem.
So what your are saying is that NVIDIA could have just sent them a crate full of low end $50 dollar hardware and been done with it? I find that rather unlikely, or rather as an end user I prefer to think that there wouldn't be that much drama over what amounts to nothing.
But, either way, having two completely separate graphics code paths means a much larger maintenance burden than one. Even with hardware to test on, I'd consider it perfectly reasonable to decide to only support one, especially if the odd company out is one with a history of not playing ball with the community.
Nvidia's platforms are a large part of industrial embedded, on which the users have no option but to use EGLStream.
The nvidia driver doesn't play well with some basic apps, but it plays extremely well with games and other professional apps running on Linux (the whole reason for nvidia to put up a driver)?
It doesn't matter if AMD sells the exact same GPU as nvidia, because when you then switch BLAS for cuBLAS, the nvidia GPU becomes 100x better than AMD.
And that's just libraries, there is also tooling, engineering support, and well, software in general. Nvidia invests a lot of money on making sure that their GPUs come with a great proprietary AMD-incompatible software stack, and in integrating this stack with anyone developing products using GPUs.
I've worked on a couple of national supercomputers using AMD hardware, and AMD pays for ~1 AMD engineer full-time that works on improving the applications that run there. Nvidia pays for a couple of engineers that manage and tune the cluster for you, and a bunch more that work on peoples applications. Easily, 10x more engineers than AMD.
Even if AMD were to build better hardware, no sane industry person would pick them up over nvidia due to all other services nvidia offers.
In case of Wayland it was was opposite. It was developer by everyone, but Nvidia. Open source graphics stack developers found a way that work best for their hardware and supported it for decade. Recently Nvidia tried to join the parry while extending it with own incompatible addition that no one else needs. Obviously many open source proponents dont give a damn about their closed drivers so they only going to support primary APIs.