Where it matters is mobile. Even if you have a dedicated graphics processor, it makes sense to have integrated and then to have it auto-switch as needed. This saves on electrical power, reduces heat, and may extend the life of your mobile devices (since heat is damaging).
Ultimately if your want to force-on dedicated 24/7 then normally you CAN, but integrated simply gives you more options if you wish to extend the battery life of your device significantly.
The desktop form factor is declining significantly in popularity in the mainstream market in favor of laptops and mobile devices. The reason is obvious: laptops and mobiles are portable, and the average user (and even many pro users) do not need that much power in their local device.
It's still very popular in the gamer and professional workstation market, and likely will be for a long time. It's just hard to cram the processing power that gamers, hard-core developers, CAD and simulation users, etc. need into something as small as a laptop without creating what's comically referred to as a "ball burner" or "weenie roaster." I'm sure there's a female equivalent expression but it's even less polite. :P
Intel has many-core options for these machines, but they tend to lag a little behind. If you have deeper pockets and really want power you can always put a high-end GPU in a server board with 2-4 Xeons and put it in a tower case. Now you have a data center node with a 4K monitor on it.
Gaming is a niche market mostly for younger ages (people with "game rigs" drops rapidly after a certain age) and most hard-core developers use laptops -- the laptops you see in each and every dev conference are their main boxes, with or without external monitors.
As for CAD and simulation that's too niche to even mention. Of course some people will always have a need for a more powerful form factor. But if CAD users are part of the counter-argument for "it's not dying", then it very much is.
http://www.supermicro.com/products/motherboard/Xeon/C216/X9S...
http://www.supermicro.com/products/motherboard/Xeon/C220/X10...
They didn't make such a class of boards in the '8' generation.
Not dead yet!
The reason why typical GPUS have high power consumption is because they are generally designed for the desktop market where they can.
But you can have low-power discrete GPUs also.
For that matter, there is no reason why you cannot have a low-power discrete GPU, and a high-power discrete GPU.
And again, it's a whole lot easier to dissipate heat being produced in multiple places than all in one hotspot.
And anyway, people who need more power know the difference between discrete and integrated chips.
I think this is about pushing the overall baseline experience of users up.
Intel has had a lot of problems shrinking the die size recently, so it must be cheaper to just give every processor a GPU that isn't used, than to produce several different dies.
I guess it's just because for most end user needs, the integrated GPU's are becoming powerful enough.
And also generally they come out a while after the equivalents with integrated graphics.
So let's see. Xeons are what I want now. Except for absurd prices. And that they aren't available. And that they don't overclock. And... And...
As I said, I wish there was something that was actually vaguely what I wanted (a desktop processor that's <=4 cores, and focused on single-core CPU performance). The Xeon isn't it.
Also:
> if you're concerned about tdp, you're probably not going to be overclocking anyways.
In a desktop overclocking is a large chunk of the reason why one would be concerned about TDP!
What do you think about i3-4370 ? It seems this processor has very good single-thread performance and is quite affordable as well.
It has the advantage of being very quiet and lower power consumption. I did briefly try an Nvidia card while getting 3 monitors working which was far too noisy (whiny).
Among other things, discrete GPUs blow integrated GPUs out of the water, and the time-to-obsolescence of a GPU isn't anywhere near that of a CPU. It also makes sense from a cooling perspective - it's a whole lot easier to cool two chips in separate areas than one larger chip, generally speaking.