Part of strategy is knowing what your organization is capable of, and not burning time and money trying to do something you can't execute effectively.
I mean, "make the fastest CPUs and GPUs and charge a premium" would be a great strategy if they could deliver. But in a world where they're struggling to keep up on the CPU side, pouring resources into GPUs could lose them both markets.
I can't remember the last time I sincerely used an integrated GPU, Intel or AMD, since they're too weak for my purposes. I only ever use them as a Lowest Common Denominator failsafe when troubleshooting.
And for use cases (not necessarily mine) where low-end GPUs make sense, it's not like Nvidia and AMD don't sell bottom of the barrel GPUs that you (or OEMs) can buy for a Franklin each or something.
Integrated GPUs with shader support (Intel HD graphics, not GMA) are fine for web browsing and programming work, which is what I spend most of my time on. In laptops with switchable graphics, sticking with integrated graphics can save power consumption. And additionally they're not anywhere near as scalped/overpriced as discrete gaming GPUs, or as horrible value as low-end GPUs (I suspect some of the price comes from the cost of a display adapter and media decoder/encoder). Though integrated graphics are subpar for gaming or compute for sure.
There is nothing stopping them from using discrete GPUs on the lower end. Don't tell me they don't have the physical space for another chip on the mobo either, because they do.
I mean, "make the fastest CPUs and GPUs and charge a premium" would be a great strategy if they could deliver. But in a world where they're struggling to keep up on the CPU side, pouring resources into GPUs could lose them both markets.