Yeah, Wayland is one of the main issue here. Things are going really well generally speaking with the Wayland transition, but Nvidia is single-handedly delaying the wide-spread transition from X to Wayland across most distros, which is super unfortunate, because it's a very important part of a desktop Linux experience. Using Wayland day to day on my XPS 13 with regular Intel integrated graphics is great in terms of perf and battery life. There's a much larger conversation to be had about X vs Wayland, but broadly speaking Wayland is just better and not bogged down by design decisions made 20 or 30 years ago.

The other key benefit would be driver management. Updating your drivers right now can be a nightmare. If the drivers are open sourced and upstreamed into the kernel this becomes a non-issue. I do understand why Nvidia doesn't want to do that though. A lot of their lead right now is not just hardware based, but software based. They have a choke-hold on the ML ecosystem and it's a huge cash cow for them. Giving away that secret sauce in their drivers, so that AMD could make their cards seamlessly compatible would probably be a huge mistake from a business perspective for Nvidia.