Netbooks are for basic internet tasks, such as browsing, email, social networking, etc. While we can understand why nVidia would want to re-define the category to suit their needs, the fact of the matter is netbooks are not intended to be nor have they ever been, designed for higher end graphics or for use as gaming machines. Clearly this would also introduce additional cost to an already bare-bones platform.
Clearly this is just jibberish, who stated that netbooks can only have crap graphics? Intel is just afraid that the nVidia ION platform will become more populair than their chipsets for netbooks, this is a low way to handle this. You should count on competition on a free market.
I for one look forward to the ION platform and I'm considering of buying something with the ION platform when it's been released.