I think it's quite reasonable to play 3-4 year old games at medium to high settings smoothly. The CPU is fast enough as to give a fine general desktop experience. Since you don't have a discrete card, you cut down on noise and can build a smaller form factor. That's its niche.
For the same price, you can't get a discrete CPU of similar performance + a discrete GPU of similar performance, but for little more you can get a lot more performance, though not in the same form factor.