That svcks, I remember it did that to me when my video card couldn't run Oblivion.
It really blows though, the video card has the power to run it, but... can't. Bloody schemes to get more money, obviously.
Actually, it doesn't have the power at all. As a chipset (It's not a card) It leeches system RAM to make up for its lack of onboard memory. Intel chipsets aren't made for gaming, more for business and basic design work. The fact they run some more recent games is more down top luck than anything.
You are right though when you say its about money. But its more about saving it. Manufacturers will give a laptop a new tech processor, loads of RAM, the latest OS, built in webcam and then put in one of the worst brands of Graphics adaptor you can get to balance costs out.