this patch fixes performance regressions in Max Payne 2, Morrowind and HL2 on nVidia GeforceFx based hardware. It has been approved by Stefan Dösinger and verified by test application (see source).
Just to add this here as well, I think this patch is fine. I could not find any way to use the NP2 emulation for conditional NP2 textures like on ATI cards