Well it's hard for intel to supply support for hardware they didn't make themselves, they would have to reverse engineer AMDs iGPU technology to provide driver updates or support of any kind.
I mean what exactly do you expect intel to do? Drag AMD to court over this?!
Well, without knowing specifically what was in the contract between them it's hard to say - the initial impression is Intel were responsible for providing drivers (even if these were repacks of AMD's), probably doing some of their own extra validation, etc. - it seems they lost interest in doing this OR AMD may have changed something in the driver packages which made this harder, but I suspect its the first option.
Now the AMD driver packs do not work, BUT contractually Intel should have the right to then get the drivers from AMD and still repack them as needed if AMD are blocking their own installers from working - its not as if they even need to do it as fequently. But Intel aren't doing this.
If the contract actually stipulates that AMD will allow the driver software installer to work with the Kaby Lake G parts and that is not working and isn't fixed, then yes, surely this would be a slam-dunk court case for Intel. Even though the value is small, it would cost AMD more either way. If Intel do nothing it could cost them instead if users demand a rebate due to lack of support, or actually file a class-action against Intel.
Anyway, we've gone way off topic here. Everybody has been saying "hmmm, Intel driver quality is a bit suspect", which is only partially true - it's hugely better than it used to be in the i8xx/i9xx/Gxxx/Qxxx days - you'll most likely find most apps/games work without glaring visual artifacts, except for the rare few. Even AMD / Nvidia hit a few 0-day issues now and then with new things not working properly / at all.
My concern is if you'll ever get a driver say 3-4 years after Xe mk1 releases for when MS release a new Windows build / driver model requirement before you'll be allowed to upgrade.
My gut would say yes, but history says don't be so sure about that.