Considering even higher end dedicated GPUS can take quite a hit when utilising full DX11 features, it's not surprising that its not included.
Particularly considering Intel's previous less than stellar integrated video performance offerings in the past.
All the IGP is really, is a 'all in one package' designed to provide pretty much the bare minimum necessity for HD video playback / monitor connections. Gaming performance was never it's intended primary usage.
Whether or not this decision actually hurts intel, will be reflected more in notebook market sales, rather than the desktop.
If it does perform 'adequately enough' though, even despite the lack of DX11 features - it will indeed hurt nvidias low-mid range market as mentioned by JW. A lot of models will be made redundant.
n other words, Intel appears to be saying, the technology is designed to protect the transmission of the content rather than managing the content once it has arrived.