I want to start out this comment to say I want my arguments to be as neutral as possible, sorry if it comes across the wrong way.
wcooper is absolutely correct, Intel is just getting back at Nvidia for the SLI deal. If I were Huang, I'd think to myself that a little fish doesn't fight the whale. I mean, Nvidia has their share of problems; Fermi was delayed almost six months, there's the whole deal of putting new stickers on old cards (8800GT, 9800GT, GTS250), etc.
As an intel user, I have to say that intel integrated graphics stink. Sorry, but they do. None of them can produce even decent 3D graphics (for lack of acceleration). So, the suit is simple. If the customer wants to play games, or do anything 3D for that matter, then invest in a Nvidia discrete graphics card, and don't buy intel. Simple as that. The market seems fair to me.