I do bet that Intel is aiming squarely at the high-end.
Intel aint gonna beg nVidia to officially allow SLi on Intel chipsets, so they will be at least faster/better than nVidia just to piss em off and Intel doesnt need nVidia for anything at all.
Next thing is that they DEFINITELY WILL NOT want to be slower than AMD, for obvious reasons.
So Intel will either be "good" or better than both. Prolly not right ahead with their first GPU, but 2-3 years should be enough experience for them.
IMO Intel's priority will be mainstream - they already conquered low-end, now need middle, and by having both they'll have most of the money flow in the gpu market. High-end will definately will be a goal too, not because its really needed (<5% of the market is WAY less important than the rest 95%), but because they can. I agree first Larabee refresh wont be the killer for nvidia/AMD, but after several generations it might be.