If you depend on IGPU, Ryzen is only choice. There will be no great improvement in IGPU in next gen Ryzen only in CPU part but for some time in future when MBs and DDR5 are stil inordinately expensive, more than gains to be had over let's say 5600g and "old" parts that are likely to get cheaper. 5600g is still very good for gaming.
Actually, it will be a completely different integrated graphics that gets used in the 7000 series. The 5600G was GCN architecture while this new series will be using RDNA2 based architecture. Nothing, really, will be known until it's known, but I have never seen a newer Gen AMD iGPU that was weaker than the previous Gen so I'd expect it to be at least as good if not better, even on the early models. There will be actual APU models as well, and those should have even better graphics.
As far as "the market returning to normal" as was mentioned in the OP, I think the market right now is about as "normal" for the price as graphics cards as we're ever going to see so if you are looking to buy a graphics card there is not a really compelling reason to wait on that if you are inclined to buy one. Some cards are back to MSRP or below it, so I think we are unlikely to see further "normalizing" of the graphics card market. I mean, you can get an RTX 3060 which is within a couple of percentage points of the performance of the RTX 2060 Super, which is what I bought back in mid 2019 for around 400 bucks, right now for around 370 bucks, so the price of a card with a given level of performance would seem to suddenly be CHEAPER than for a similar level of performance from 3 years ago. I don't see that getting a whole lot better anytime soon, if ever.