We heard that people refer to Fusion as a GCPU. That might be the actual name but it is too early to talk about a graphics meats the CPU integration brand name.
GCPU might be the thing that will finally bring Intel on its knees as it might do some stuff way to faster than dozen of R600. This CPU will be fast for ray tracing any many other graphics things that are very hard to implement on today's graphic cards.
Can this compromise a overall discrete graphics and sound an alarm to the end of the era. You should not be worried at least today as Fusion is late 2008 so we have a lot to go.