I think the thing you missed, is that I'm not talking about what will happen this year or next year. Eventually Intel and AMD are going to be able to put top of the range GPUs into their processors. I'm not talking about their current product range. They don't have the technology right now to make a worthwhile graphics offering for a top end processor. But one day they will. And I don't think it will stop there. From there I think they will start to eat up all the other things in a computer. This makes sense.
Lets say a computer needs to cost $500 and has a sound card, network card and tv card in it. the processor is $100 of the price. Now if they can put those three things in their chip, they can charge say $120 per chip but the total cost of the machine comes down to $450. So they make $20 more (probably $17 more profit) and the customer gets the same power computer for $50 less. Hypothetical but that's the business plan. Its what they have done to low end and mid-range computers regarding graphics. The more they can stuff on their chip, the cheaper the machine and the larger slice of profit they make.
So, from there, why not stick the RAM on the chip? The North and South bridge reducing what motherboard manufacturers can charge. Why not stick 20Gb of SSD on the chip? Once you are there, you could mount an Intel operating system onto the chip. They already make SSD. Intel are in a position to eat everyone else in the next 30 years. At least if I was MD, this would be my strategy.
Intel hold all the cards. Even Microsoft are at their mercy to an extent, because they make the brain of the machine, and no one seems to be able to compete with them on that. So that's my prediction. Your entire computer will end up on the one chip. Then that chip can go in a tablet, or a phone, or wherever. It doesn't matter. You'll have unbelievable power in all devices and Intel will have almost total market share.