Niche product and giving people what they asked for, is obviously just  marketing noise. Intel came up with this tick tock idea, that's  something that they promised.
Notebooks and all this mobile  nonsense absolutely need integrated graphics just to drive high  resolution displays. So after all low voltage chips have been binned,  what do you do with the rest, well you create a new higher power target  TDP, but rather low clocks to maximize yields. Voilà, Broadwell-C is  born. 
So A TDP of 65 W isn't meaningful at all.  The i7-4777R (3.2/3.9 GHz) also had a 65W TDP, the 
i7-4790S (can even turbo up to 4.0)
If  you compare 4th and 5Th Generation Intel Core i7, on ark.intel.com you  see that across the board even the high end 47W mobile chips all went  down in clocks. Maybe trading graphics for peak performance is all well and good for mobile device TDP, but certainly not for the desktop. According to  Tomshardware the iGPU consumption amounts to less than 20W (Torture test  minus CPU Only). 
For a while now Intel has been pushing  consumers towards the low performance, form over function devices that  are destined for quick obsolescence. Considering that iGPUs are only  limited by memory bandwidth and considering that we get a massive boosts  from DDR4 and texture compression (like seen in Nvida Maxwell). Skylake  CPUs will be able to pack twice as many graphics EUs and maybe dedicate 30 W or more of their  total TDP to graphics. Without any mention of G-sync / A-sync and with dodgy 4K interfaces at just 60 Hz, what a colossal waste it could turn out to be!