Yes, the GPU is integrated into the northbridge. Seperating the two would require 2 whole seperate fab processes, lithography ething, etc. It's very expensive. Not only that, nVidia wants to push it's graphics chips. While, it does seem a waste of transistors (especially if your not going to even use the frigin GeForce 2 MX), it's cheaper for nVidia at this stage. Remember, nVidia does not fab their own chipsets- ST Micro does. Asking ST Micro two make 2 different chips costs booko $.
As for the end user it won't matter. The chipset isn't that much, between $50-$55. That'll put the boards at $125-which is competitively priced. You can always disable the on board sound and video in the BIOS- nVidia has promised that ability.
I know i'll disable the on board video- but the sound is supposed to be state of the art. I think I'll keep that. =)
-MP Jesse
"Signatures Still Suck"