There were GeForce 3 cards available to the masses in early 2001, kazan, so "New as of 2002" is not accurate at all. Of course, though, I tend to agree with you, added with the fact that Pixel Shaders up until PS1.4 are basically beefed up register combiners, which is nothing special at all (Though PS1.4 has nice stuff, like a dependant texture read).
I'm all in for vertex shaders, though. Unlike pixel shaders, vertex shaders always have software emulation, and both Intel and AMD have very optimized VS1.1 emulation (even though it's nothing compared to a hardware implementation - my AthlonXP 1700+ is nearly 7 times slower than my GeForce4 Ti4200), and since we aren't talking about massive poly-counts anyway (at least not right now), the vertex shader emulation shouldn't be what's bogging down frame-rates anyway