NVIDIA Engineers On The Realities Of Linux Drivers
linuxquestions writes "LinuxQuestions.org recently interviewed members of the NVIDIA Linux team. The interview covers the internal use of Linux at NVIDIA, the current demand NVIDIA is seeing for Linux drivers, the biggest perceived obstacle in Linux becoming a mainstream gaming platform and the decision to maintain both an Open Source and closed source Linux driver."
The only people that can truly comment on why the nVidia driver can or can not be released are internal to nVidia. So you have to take whatever nVidia says at face value. If they say there is licensed code in their drivers that they can't release, then you have to accept that, as you are in no position to say "Bullshit! There is no licensed code." You don't have access to the source, so you wouldn't know.
From the nVidia license agreement:
... are owned by NVIDIA, or its suppliers."
"All title and copyrights in and to the SOFTWARE
This might be standard legalese, but it certanly states that code isn't necessarily all nVidia's.
By the way, "yum update" is not a good idea on Fedora Core 2 if you have the nVidia driver installed.