Just because the older C2D's have higher clocks doesn't necessarily mean they are better. Advances in the micro-architecture sometimes leave clock freqs irrelevant. An i7 920 @ 2.66 will beat a Core 2 Extreme QX9770 @ 3.2. But to be sure I guess we will have to see the highest end Arrendale vs highest end C2D.
The integrated graphics do suck, but at least now we have a choice in some laptops where we can switch from the integrated to dedicated, saving battery life when needed and boosting performance where needed. It adds flexibility basically, I'm sure Intel was aiming more for that rather than performance in 3D games.
What I really want to see is the ULV versions of this chip. I'm hoping whenever they start coming out, it'll push down the prices of older Ultra-Portable laptops around the 12-14" sizes. Certain ones with the C2D SU7300 and 4GB of RAM can be found for around $550 today. If these prices go down far enough, netbookks will be obsolete in my mind.