"Core i3" is just a brand name, it doesn't refer to any specific chip/generation/architecture. I fully except that Ivy Bridge i3's will be released eventually. And Sandy Bridge (what this box probably has inside) is just one generation behind. And I don't see any reason why you couldn't make similar box with Ivy Bridge i7.

If you think that Intel could now stop producing new CPUs for ATX form factor, you are the one who are nuts. As far as I know, Intel has no plans to leave the desktop market.