Why would anyone think Intel can only do CPUs? What about their networking chips? Motherboard chip sets? Centrino? SSDs? RAID controllers? GPUs are maybe the only thing they haven't done well.
Intel knows that high end PCs and servers are not the only target. Putting things like GPU, hardware DRM decryption, hardware codecs, etc. on-die is targeting the tablet and set top box market. Hardware DRM decryption would allow for a much tougher DRM that could still be used with low end hardware. That is, I'm sure, to get the content providers to release digital content earlier. The advantage is that they get content way before other services do. Could work.