Well, many users wouldn't miss the dedicated graphics, but it's a little sad considering dedicated graphics was a selling point for the iBook line for quite a while. (I can't be the only one that was immensely disappointed by that when the MacBook came out)
I think the reasoning for this was that the G4s were so terrible at graphics, that without a GPU, they wouldn't have even played QT movies.

All Core processors, coupled with Intel's integrate GPU well out-pace the G4's crummy graphics, even with a card.
It still does not address issues of those who want to do even mild to moderate gaming. I know I've used this example before but any computer being sold in 2008 should be capable of playing the kids game
The Sims 2 (2004) at medium to high settings... but the MacMini can barely run the game.
They lacked built-in Bluetooth and Wireless - it was like a $100 option together. That's the justification Steve made when he raised the Intel ones $100, they are now built-in.
Ah, forced upgrades of technologies not everyone needs.
I could install a wifi card in my desktop PC, but it's 6 inches away from my AirPortX. If I was going to put a mini in the livingroom, yes, I'd get it with WiFi... but come to think of it, I wouldn't even have a WiFi router if my wife and I didn't already own laptops...
And don't get my started on Bluetooth. Pure commodity.
Aside from all this, Bluetooth and WiFi (even 802.11n) have dropped like rocks in price. I know Apple isn't prone to price cuts but there's no way I should be paying $100 for what costs ~$40 on the market. I can only imagine what it would cost OEM... $30? $20? Less? That's in the ballpark of 500% profit... which is just wrong.
-Clive