I've been waiting for a few generations now to get an Intel CPU with decent iGPU but it's really been stagnant. I gave up the wait and pre-ordered a Ryzen last week.
I do still think it makes sense for Intel to ship CPUs with those integrated CPUs, although maybe it wouldn't be a bad idea to offer a chip with more cores and no GPU for the enthusiasts.
Why? iGPU's increase production costs AND reduce both CPU and GPU performance. If Intel wants to produce a separate GPU then more power to them, but that's not what they are doing they are a monopoly extending their dominance to another market at the cost of consumers aka us.
Remember, resistance increases with heat, so even it there where zero manufacturing or performance costs it still increases power consumption.
Furthermore, these iGPUs are incredibly energy efficient, and obviously small. That's great for battery life and PC size.
PS: GPU's might seem like something you want on the CPU, but bandwidth is a killer worse they add heat which directly lowers CPU performance.