*woosh*
That capability will increase, and demands for performance will increase, is not in question. They will. It's how long it will take before it will cheap enough, and how long until even high-end GPUs run cool enough, to put the equivalent of a midrange dGPU on the CPU. Low-end GPUs are already covered by IGP, and the market for them basically exists for adding displays, dealing with pre-Haswell Intel video drivers, and replacing displays if connectors break. In 2009, just 5 years ago, a $50 card was worth getting over any IGP of the day. That price point replaced by IGP will only creep upwards.
woosh?
4 years ago, people said iGPU is going to obsolete dGPU. They claim the same argument as you, that soon iGPU will be powerful enough to compare to equivalent mid-range dGPU and thus, there will be longer a need for it.
Except, the equivalent mid-range dGPU always increases.
5 years from now, APUs & Intel CPU will probably match a GTX760 or R280 class performance. Would it suddenly be powerful enough to obsolete dGPU? Nope. 5 years from now, mid-range would be much much more powerful and 4K will be the norm, at which point a 760 or R280 class APU still won't be able to handle it.
What about further out, 10 years from now? Same thing applies. 8K may start to come on board or even VR. Your APU with its TitanZ class performance wouldn't be enough for real PC gamers.
20 years from now.. what's the difference exactly? You don't get that gamers demand more and game devs will keep on making more and more demanding games, display tech keeps pushing more pixels etc etc. We'll get to a point where there's entire holodecks like on Star Trek. Guess what? A discrete would still be faster.
The whole idea of iGPU replacing low end is true, sure, but the new dGPU low end is still faster than iGPU. When next gen iGPU comes and matches the current low-end, a new low end is created. Nothing has changed, only the pricepoint for superior performance.
Which comes back to my point, as long as there are people who are willing to pay top money for the best performance, discrete GPU will always hold a huge advantage and won't be obsolete.