Actually, given that it has 128MB RAM onboard, I'm sure it also does 3D tasks decently enough.
What's interesting, is that it's 1x PCIe and barely actively cooled. I bet if they tried they could fit it in an 54mm Expresscard. A slot in GPU for integrated graphics-only laptops?
You'd be absolutely correct if it weren't for the fact that modern GPUs, like CPUs, are now fully programmable (and trust me, this is a very very good thing). The lines between CPUs and GPUs have begun to blur, and in fact Intel is planning on releasing a high performance graphics card based around 32 to 48 in-order x86 processors similar to Atom on a single piece of silicon. Based on the numbers they've given at the last SIGGRAPH conference (a technology conference devoted to graphics) it should actually be able to compete with nVidia and ATi in terms of performance, price and power consumption.