Some senior folks in Intel's IGP group talked about 10X faster integrated graphics in 2010 and we had a chance to hear some a few more details from a chap called Thomas A. Puazza who is the Intel fellow for IGP graphics.
He didn't want to comment on Larrabee as this is not his baby, but he mentioned a few ways how to get to the promised 10X performance over the current IGP.
He said that in the next 3 years the transistors will get smaller, and the IGP will get more features. It will be a lot of work in new drivers.
Intel has to improve the drivers to let the better gaming on your integrated PCs especially as a big number of notebooks has IGP only.