You don't know ANYTHING about how it will perform, no one does, so stop acting like an 8400GS isn't going to cut it. The amount of vector calculus that goes into processing something like specular lighting alone is a monstrous amount of mathematics; there is no way even the most complicated of dynamic physical systems could have as much math as graphical processing. Think about how little information needs to be processed: particle shape, mass, x/y/z acceleration, x/y/z velocity. Now take that versus something like applying specular lighting, one of MANY special effects, to the graphics:
http://en.wikipedia.org/wiki/Specular_highlight
Yeah, draw your own conclusions.
The main problem with physics is that in theory 'everything affects everything'.
You have this recursive chain of events. You solve the acceleration/velocity of one object, and then that results in a new force that is affecting all touching objects.
So the main challenge is to forward the results from one body to the next...
The PhysX PPU was designed more or less like a network switch, where packets with results could quickly be transferred to other processing elements. People who judge the PPU by its MFLOPS rating are sorely missing the point.
CPUs are weak at physics because they have a very low number of concurrent threads. They will have to process the physics system mostly in a linear fashion, iterating the results over and over again, until the system is assumed to be in a converged state.
Now, Cuda actually fits this bill nicely, because the Parallel Data Cache will allow results to quickly be forwarded to other threads, giving an effect similar to the PhysX PPU. So the whole idea of doing physics with Cuda makes a lot of sense (even with as little as 16 to 32 shaders at a time... I believe the PPU only had about 20 processing units aswell).
ATi's GPUs don't seem to be that lucky.