Even if they have to stick to DDR4-3200, the RDNA CUs are more memory bandwidth efficient than VEGA CUs. Cutting down to 6 RDNA CUs can limit the iGPU in other ways. As we have already seen, there are already fewer ROPs in VEGA8 in Renoir. That seems to be a hinderance to total performance for VEGA 8 in some situations, even though it has high enough clocks to have more available FLOPS to throw at graphics processing.
It seems likely to me that, even though the "enhanced 7nm" process that Cezanne is going to be produced on has an improvement in density, the Zen3 cores, having more transistors than Zen2 cores, will take up a greater percentage of the die space, meaning that there will still be considerable pressure on the VEGA cores to live in a tiny space. Better thermals and higher clocks should enable another gradual evolutionary performance improvement for Cezanne, and I'm sure that the thin and light, iGPU only market will greatly appreciate that. It may not matter much for desktop, at least, not as much as the improved CCX design and greater single thread cache availability will help the CPU cores, but, it will help.
What follows, being produced on 5nm, and including RDNA cores with DDR5, should be something special. I suspect that iGPU performance will be notably past the RX560 and may even approach RX570 levels in CERTAIN, VERY SPECIFIC, situations. More generally, when used with image scaling and sharpening, 1080p gaming should be very comfortable for most titles with excellent frame rates. I wouldn't suggest it as a daily driver, but, its not unreasonable to use the same approach and drive a 1440 panel with one for those road warriors out there.
Again, the progress of Intel and AMD on iGPUs has been significant in the last few years. It's going to hurt the volume, bottom end products from both Nvidia and AMD as anything below the 1650ti and 5500M should be of very little actual benefit over the iGPUs being offered in the next generation mobile chips from both vendors.
As for beefy iGPUs being irrelevant, I dare say that the 2 in 1 market is showing that there is a use for those things. 4500u/4700u 2 in 1 tablets are doing quite well in gaming with reasonable expectations right now, with almost all of them not having a dGPU. I believe that, if they could actually find their way into the market, 4800u/LPDDR4X-4333 quad channel (4 x 32bit) based convertibles should be quite compelling for most everyone that's not playing AAA games competitively.