It's not about having more capability to execute ...
It's a question of TRUST! A lot of consumers aren't willing to give Intel the time of day when it comes to a discrete GPU.
How do you propose that Intel can gain a solid foothold in the discrete graphics market when they have no following ?
Because if Intel bests Nvidia or AMD (unlikely, but bear with me), then word will get out and people will gladly go over to Intel. As Intel does close in on AMD and Nvidia, and grabs market share like they have been, it will become increasingly important for them to focus on providing great drivers, and I think this problem has already been resolved to a great extent. Frankly, their drivers are rather good these days, however I question their ability to quickly push through things like hotfixes.
Plus, Intel's IGP / GPU drivers are legendary... for poor quality and support. (No Haswell IGP drivers for XP, for example.)
Good. Screw XP, and everyone still using it. Intel's drivers have actually improved tremendously, starting at least from Sandy Bridge onward.
So your whole argument is that Intel can improve & AMD can't.?
Way to completely distort what he said.
Intel has a LOT of money but they cannot make a video card? how come? apart from AMD always beating them in iGPU, they intel also has no video card to this day.
As mrmt pointed out, it wouldn't be profitable. I do expect the dGPU market to grow a bit with the upcoming 4K era, but there isn't really room for a third player, unless Intel wanted to blow their cash reserves on sticking it to Nvidia. I don't see why they would want to do that, though.
As for the IGP thing, it takes time to catch up, when you previously had no interest in doing so. Expect the gap between Intel and AMD's IGPs to close significantly, just as it's been closing since Clarkdale.