Dude, the Intel Integrateds will not run any game in a very full stop fashion. Stuff like Sins, perhaps, because the demo looked poor even on my 8800GT. Even if the game ran, which it won't due to excessively poor quality and out of date hardware (X800s, yeah, I understand you being pissed off. Seriously.) you'd get no FPS whatsoever. You could play games from the 90s on such a card. Source counts.
It's like, seriously. The Intel Integrated is budget budget budget, so much so that you're lucky to use it for Windows. Intel practically pay the motherboard manufacturers to use it. It's the lowest quality possible crap you could buy that calls itself a graphics device. You'd be better off just not buying your system if you can't afford something better.
To be honest, I'm not going to comment on whether or not you can afford it, but $200 every new game is overstating it. Way, way overstating. I bought a computer for (the equivalent of) maybe $1100 dollars three years ago (upgraded a lot just after Christmas) and it ran everything fine. Even Supreme Commander and FA was not too bad, and BioShock too.
The bottom line is, diminishing returns goes the other way in hardware. Recently with new mainstream cards like ATI's cards newer than the HD2x series, and the 8800 GT, it's not so much the case. But for computers bought before that, the more you spend, the more you get for your money. You might say that my current machine, about $1400, was a lot more expensive than yours. Yes, but it's a massive factor more than that more powerful. You get better performance per price if you buy the best hardware available than the worst (peak is pretty inclined towards better).