Only because of the way they are currently implemented on PC. Both current-gen consoles for example use integrated graphics to great effect, but they are engineered around them with high-bandwidth memory (GDDR5 or eSRAM), as opposed to the after-thought they usually are on PC.
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The current-gen consoles are effectively mid-range dedicated GPUs with a CPU integrated in terms of stuff like die area[1], compute and raster/pixel units, memory bandwidth, etc, and even then performance isn't exactly something to write home about.
[1] Compare http://www.bit-tech.net/news/hardware/2013/11/21/sony-ps4-ap... to the die shots in this article, for example.
It's still much better than anything integrated in the PC space.
IMO, if you use dedicated GDDR5 ram it stops being integrated graphics. Granted, I can see the argument, but there are still issues with things like heat dissipation outside of low powered devices like a cellphone.
Iris Pro uses high-bandwidth eDRAM.
Haswell (Iris Pro) has 128MB of eDRAM on chip enabling it to do some benchmarks and games reasonably well. But, even low end (50$) GPU's have 1GB of DDR5.
So, it's yet another huge compromise. Granted, having huge amounts of L4 cache could in theory be very useful when you disable the graphics. Which they might do, I don't know a lot about Iris.