i doubt it would anytime soon unless intel buys out one of them ,ATI and nvidia have a much better reputation and more experience, but it would be nice to buy a motherboard with Intel integrated graphics, that could actually play games ! ATI and Nvidia integ runs as good as a low end graphics card ( or an old medium end eg. 9600), intel integ just plain sucks, no hardware T&L or advanced shaders....
but if intel can push lots of money into R&D or just buy out another company or one of their designs , they will have an advantage of their advanced fabs vs ATI and Nvidia bieng fabless , for instance , if intel were to launch a 65nm 7800 based card , they could afford to sell 24 pipe versions for 200 USD and kill the 7900gt and 7600gt... and also launch a superclocked 32 pipe version that would rape anything out right now... and mass produce it all at its numerous fabs.....
They could also kill low end ATI and Nvidia graphics by upping peformance on their integ's eg. integrating an 8 pipeline GPU , which may be feasable @ 65nm ,
It would be GREAT to see competition .