Do discrete GPUs have a future?

The PC market is clearly undergoing a paradigm shift, with the introduction of next-gen graphics platforms by industry heavyweights such as Intel (Sandy Bridge) and AMD (Ontario/Llano).

Will Intel's Sandy Bridge pose a threat to discrete GPUs?

Intel's Sandy Bridge is apparently capable of outperforming all current integrated graphics platforms. But does the processor microarchitecture threaten low-end, discrete GPUs?