Intel powers an Arduino for the first time with new “Galileo” board (ars technica)

Seems a perfectly reasonable strategy. The devices you list as their targets are all cheap. Producing an equal or superior alternative at a similar price would risk cannibalising some sales of higher-end Intel processors. This way, they hopefully muddy the waters and reduce sales of the competing device without diverting too many people to the bottom end of their product range.