More towards SM 2.0 for 'WHQL' certification....
Until [x] Enable geometry instancing is enabled in the Catalyst AI driver, then I'd say SM 2.0b without doubt.
Because ATI wanted 'WHQL' certification for Windows XP, DirectX, etc, they needed to disable it by default.
The game that best demostrates the difference in performance is Far Cry during outdoor scenes with lots of forest.