You're forgetting one simple fact.
Best way to drive development, new ideas and prices.
Intel already doesn't have much to compete with in desktops, yeh, AMD? not even a fraction of there size.
ATI kept Nvidia honest in gpu's, just.
These days ATI with AMD against Nvidia, it's good competition, which GPU's better?, next model it changes.
Intel takes over Nvidia??? just too big, most smaller companies would disappear.
Then the Intel bean counters will say, why put so much money into development?
There's no-one to compete with.
A small company with a new idea, still needs a lot of money for development.
The idea/patent is bought out the largest company and shelved.