Integrated video makes it seem like a low end chip. But 6 CPU cores, and people who will never use 6 cores will pay $$$.
They also opted for an integrated memory controller. I guess the engeneers figured that very few people would want to make use of such graphics controller. Then why make everyone else pay for it?
INTC must have hired a Gillette excutive http://www.thevoiceofreason.com/2003/no75/GilletteSixBladeRazor.htm
People must not understand where I was going with this. The point is that an integrated GPU with hundreds of cores, access to which is through DMA and not through a bus, would friggin rock! AMD is working on something called Fusion that is supposed to be the same thing...
Both are currently available: http://www.maximumpc.com/article/features/intel_rolls_six Some of the i5 CPUs already have integrated graphics.
It would also be a bit of a nightmare to cool, unless you step down a size as far as fabrication goes. In addition, building all those caches for each compute core on the chip is going to be a bit difficult. It's a great idea, but we'll see when it will come around. Edit: This is in reference to full scale GPUs.