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physX is nice, but doesn't offer enough control for people who want to create proper actor movement, among other things.

I actually think that the problem is not the lack of control, but the many possibilities to control things. The hard part is to setup the correct factors correctly to get the wanted simulation.

I didn´t state that ellipsoids are "so great". But in the end they also aren´t worse then especially AABB boxes.
I btw heavily doubt that the ellipsoidal bounding box is responsible for strange results when tracing.