Basically, Intel's lack of experience in the discrete GPU driver space will prevent their GPUs from being competitive with older APIs for quite some time.
They could easily still be "competitive" in games utilizing those older APIs, even if performance won't be where it could be. According to Intel, they plan to price the cards based on how they perform in DX9/11 titles, so one could arguably look at their much better DX12/Vulcan performance as a bonus relative to the competition. It's possible that they could even outperform the competition at similar price points in most older titles, making up for the unoptimized drivers by providing more hardware with lower or nonexistent profit margins to help them make a good first impression.
It's actually kind of similar to what we saw with AMD's Polaris cards, or with the early generations of Ryzen CPUs. AMD's offerings, while decent, weren't exactly leading in terms of high-end performance at the time of their launch, but they priced the hardware accordingly and gave more hardware for the money to make up for it, allowing their products to be very competitive despite their limitations.
I imagine there will probably be certain titles where Intel's cards perform worse than the similarly-priced competition, but as long as performance is still reasonable in those titles, while being better in most others, that shouldn't hold them back too much. So performance of the cards may not be much of a concern. My main concerns would be over how well the various side-features and control panel settings work, and whether there are any compatibility issues with anything.