i think intel will have to show first that larrabee can do what they claim it can. x86 chips are good multipurpose chips so good cpus, but if you need just a limited instruction set thats specialised on doing gfx output the current ati/nvidia chips have a lot more power.
So there is still the question how good a highly parralellised x86 based chip (which larrabee should be) can compete with the chips that are specially built for just gfx purposes. you can also see how much power the current gfx chips from nvidia have as an example when you compare physx performance on them with physx performance on a intel cpu or even a physx card (yes nviddia gfx cards destroy even these specialised physics boards in tehse ebnchmarks, and amd gpus would most likely do it too if they would be supported)
add to that the history of intel when it comes to big announcements for gfx chips that neevr lived up to expectations once tehy came out and finally ended in their chipset graphics, and then you see why many in the industry are on a wait and see position when it comes to larrabee. if larrabee can deleiver what intel promises then i'm sure they will sell, but people want to see first if it delivers what it promises.
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