NVIDIA should have 40nm parts out this year as well, and both camps have their own way of rolling out new process technology. AMD continues to be a little bit more aggressive on that front, seemingly making the move on the earliest viable hardware whether it's low or high end. NVIDIA looks to play it a little more cautiously. It's all about cost benefit. Certainly it's a benefit to have smaller GPUs as they cost less to make. But early on in the life of a manufacturing process, yields can suffer driving price up. Timing the move well can have its advantages, and NVIDIA is counting on that this time around.
It isn't clear when NVIDIA will have a part in this generation of their architecture that competes in the near $100 market, but in the meantime the option is certainly clear: the Radeon HD 4770 is the way to go for now.