Read some of the threads on here. There are a disturbing number of people who actually believe that igpus are something other than a step backwards and will lead the way to faster graphics...
Before CPU IGPs what we got instead was a majority of computers using chipset IGPs. Intel having the greatest volume in GPUs is nothing new, it goes back several years.
The old IGPs were on old processes and barely got any attention, they pretty much started out just because there was pad limited space left over. CPU IGPs share cutting edge process technology and benefit from tighter integration with high end CPU designs (so not just good for CPU communication but they get stuff like shared cache). The benefit for power consumption is obvious.
Motherboard IGPs were marginalized even further once the memory controller moved on die. You don't want to go back to those do you? Or do you think the whole market should now embrace discrete GPUs? If you answer neither then you shouldn't call CPU IGPs a step backwards.
Of course none of that is counter to your point that they're not going to start threatening serious discrete GPUs.
All they really do is lower the cost of the very, very low end while the rest of us subsidize their development and are stuck with a rather significant die area that we will never get any use out of.
They're not lowering the cost of the lowest end discrete GPUs, there wasn't really any cost to cut there to begin with; no, they're getting rid of them altogether. The baseline for low end discretes is soon going to be offering something tangibly better than the best APUs. Otherwise you just can't compete on price; for most people the IGP is going to be essentially free.
The problem is that discrete GPU vendors were using the income from the low end GPUs to fund development of the high end ones. But AMD replaced that with APUs and nVidia probably moved to feeding off of mobile SoC sales.