Any true hardcore gamer would use both for the time being, but incorporating the GPU into the CPU as an all-in-one component is a step forward for mobile devices like laptops.
Besides, this type of configuration has been around since what, 2006, although as a shared configuration instead of an all-in-one.
Personally, I like the idea of Sandy Bridge. Well, if it lives up to the hype. The only real downfall is that Apple won't pick up on it for a few years...
Intel could take a good look at the old PowerPC chips made by IBM and Motorola if they really want a power boost.
PowerPC - Wikipedia, the free encyclopedia