The AOE3 HDR looks rather messed up from what I'm seeing in screenshots. It's overdone. Far Cry and SCCT provide much better examples of what it can do, although you have to tone it down in FC to get it to look right. Does anyone know how the pseudo HDR in Half Life 2 looks?
The reason some games support HDR only on nVidia cards is because the nV cards support 32 bit framebuffers. I'm fairly sure that those aren't actually part of the SM3.0 specification, and are just something NV does and ATi doesn't.
It seems that the X1800 line will have the OpenEXR FP16 support in addition to SM3 since games are starting to use that. SM3 and HDR are quite separate as you said, but they seem to go together for some reason in terms of both video card and game support.
No, I mean HDR. It implies a large dynamic range of brightnesses, and I'm pretty sure modern displays simply can't do it. An LCD has like 8 bits per channel if it's a good one, and it's not enough for real HDR. CRTs are a bit better, but even they aren't exactly up to being called High Dynamic.
Some CRTs and 10-bit LCDs can display HDR. Well, technically CRTs have no limit to how many colors they can display, but that's without considering external lighting and glare. Of course, none of the gaming video cards can output more than 32 bit color, so it's kind of a moot point. I think a downsampling technique called tone mapping is used to show HDR images on a normal 24/32 bit screen.