Sure, their iGPU offerings were never competitive for gaming or complex tasks, but given it came for "free" with your CPU, it was good enough for most businesses and consumers and was a also a major boon during the GPU shortage where gamers who build systems with AMD chips were left unable to use their PC while those who went Intel could at least use their PC for some productivity and entertainment until they could buy a dGPU.
So it's not like they had to start absolutely from scratch here. In fact, Intel's latest integrated GPU architecture, Xe, was so good, it was beating the integrated Vega graphics AMD was shipping till the 6xxx series with RDNA2 in 2022, while also killing the demand for Nvidia's low end dGPUs for desktops (GT 1050) and mobile (MX350). Xe was also the first GPU on the market with AV1 decode support.
So given this, Intel is definitely not a failure in the GPU space, they're definitely doing some things right but they just can't box in the ring with "Ali" yet. Anyone thinking they can leapfrog Radeon and Nvidia at their first attempt would be foolish. Intel should take on the losses on the GPU division for a few more years and push through.