Lacking: yes. Better iGPU than any Raspberry Pi, comparable to Alder Lake-N. It's basically the same thing in Ryzen 7000 desktop chips, which are comparable to Alder Lake desktop UHD 770 (32 EUs). 32 EUs is in the Alder Lake-N chips N200, N300/N305.
Here's Ryzen 7000 2 CUs vs. UHD 770 (11900K/12900K)
https://www.techpowerup.com/review/amd-ryzen-7-7700x/22.html
Similar performance in many cases, some outliers for either side.
Both Alder Lake-N and Mendocino added AV1 decode.
I think the other big thing is that it's limited by a 64-bit memory controller, same as Alder Lake-N. Another reason why they are two very comparable dies and should be direct competitors... if AMD was willing to dump them on the market like Intel has done with Alder Lake-N.
If AMD wants to change the low-end game, they can have their chance with "Sonoma Valley", a drop-in replacement (same FT6 socket) for Mendocino that uses 4x Zen 5c cores, according to leaks. Measure the IPC change between Zen 2 and Zen 5... that would be sweet, even if the iGPU is still lacking.