I see this for the masses. However, I can't see any power user liking this. Take gamers, for example. Aren't most high-end sound and 3D chipsets designed by smaller independent companies? I don't think Intel could put out a high-quality graphics capable board.
Wouldn't this leave a small niche for traditional motherboards and componnets? We might pay a slightly higher price, but they would still be around. Wouldn't they?
(Please tell me they would be!)
Can you imagine a world where everything's on the CPU? "Whoops! That SCSI controller died. Better go buy a new CPU for that server..." That would just suck!
Unless all expandability moved outside the case. Maybe a really (really really really) high-speed external bus standard will come about. So you will then start seeing external 3D graphics adapters and SCSI adpaters.