imo
larabee will come and will only be the start of things. regardless if it can or can not compete with current gpu's or it will or will not talk with certain software.

larabee is part of SoC. once the entire system is on chip it won't even matter what else you going to hookup to it. you still going to pay for the whole system.
chipsets or at least a major part of it is already moving on chip with the p55/p57 platform and 1156 socket which boxes out quiet a bit of competition on the chipset market and graphics will be next. the enthusiast and gamer will still be able to use a dedicated gpu but the mainstream won't need to and corporate will be happy too.

good idea, but i foresee poor future competition bursts that spur development and price wars which the end user usually benefits from