How capable are these graphics chipsets anyway?

It will be very handy for lower-end PCs and mobile devices to have the GPU and CPU on a single
chip, with a smarter memory hierarchy.  I don't claim to understand all this but I believe the
only thing stopping such integration is that CPUs are on a 12-18 month cycle time and GPUs on
about 6 months, so it may be that the integrated GPU-CPU combination will evolve at CPU rates,
i.e. taking a snapshot of the latest GPU technology and delivering in 12-18 month cycles.
There's also a commercial issue in that gamers buy a new graphics card every year or so -
non-integrated graphics will survive a long time in that market, until the rate of GPU speed
increases slows down quite a bit.