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Once again, if this solution works well, why doesn't any other game developer use it?

Didn´t I already state above that Unity for example has no alternative to using PhysX for collision detection? Same for ShiVa, even though it uses ODE as far as I know. C4 on the other hand seem to offer alternatives, but the examples use its physics engine.
So there are indeed MANY developers using a physics engine for collission detection, as that actually is one of the main things such a physics engine is designed for. Which btw also includes raytracing...