I was around when Intel was going to dominate video cards with the i740, because it was the first to use AGP and it had high end 'military tech' ....I am sure Intel has the potential to produce a high performance video card, the issue will be driver development and support. They have a terrible track record with optimising drivers for games (look at any review of Intel iGPU's, they are consistently inconsistent in game performance, but always good with benchmarks). They also have a track history of abandoning anything they don't immediately dominate.
Wrong. Intel started to assemble, IGP's in it's motherboard back in the 486/586 days which woud'nt require an external PCI or AGP card in the first place. Saving cost and a easy way for intel to gain market.