Just because intel hasn't created a high performance high TDP graphics part, doesn't mean they can't - the graphics core used in the GT3 is scalable just as the Jaguar graphics core is. It can work in extremely low power devices with less performance, or go all the way up to high performance with added stream processors - performance is generally linear with the number of stream processors added. That is exactly what AMD did with the SOC in the PS4, and intel could design a similar product.
Intel is obviously focused on the mobile market with their integrated graphics and they haven't yet made a high TDP graphical processor. Again, that doesn't mean they can't do it - they have the technology to do it.
I can see an argument for AMD being a better choice simply by the fact that intel tends to do extremely well in synthetics, while they are VERY hit and miss in actual games performance. For whatever reason, AMD and nvidia graphics for the most part tend to be very much more consistent in actual games - whereas, as an example I stated earlier, you can compare the GT3 to the 650M where the GT3 trounces it in synthetics. Yet the 650M is faster in actual games. Maybe this played part as to why AMD is chosen, but I don't know what the actual reason is. Nor does anyone here, but I don't think it's a technology issue. Both AMD and intel had the technology to create an appropriate x86 SOC for a console - But, again, I can see an argument for AMD being a more appropriate choice for gaming. Thus far all of intel's graphical efforts have been hit and miss in actual games, and they have been slightly behind in terms of features.