Grandmastersexsay :
How much cheaper could they be without the integrated graphics that builders don't want?
Not all that much since the main reason for integrating a low-end IGP in all mainstream CPUs is to make the die large enough to fit all the solder balls under the die so you would end up paying for die area that does absolutely nothing instead of paying for an IGP you might use for DirectCompute, OpenCL, QuickSync, backup graphics, etc. On Xeons, the huge L3 cache and extra cores provide the surface area.
If you look at the 3350P vs 3470, you save only $10 from losing the IGP and 100MHz base + 300MHz Turbo so the 3350P is not really worth bothering with: the 3470 is 10% faster for 5% more cash so the IGP is effectively free.