nVidia's GPU technology focuses on maximum performance. Their GPU's are power-hungry, are capable of rendering billions of triangles per second, and have an interesting programming interface to support operations such as custom shading. (Within the last few years nVidia and AMD have improved support for use of their GPU's by computation-intensive non-graphical applications. For example, people use GPU's for Bitcoin mining, for the good and simple reason that their computational throughput on SHA-256 hashes blows CPU's out of the water [1].)
Intel's GPU technology focuses on low power and low cost; as long as their GPU's can run the Windows Aero GUI and are capable of playing streaming video, it seems Intel doesn't feel a need to push their performance. The combination of low power and low cost means Intel GPU's are ubiquitous in non-gaming laptops.
nVidia has observed that Intel GPU's have become cheap enough that it's viable to put both a weak, low-power Intel GPU and a strong, high-power nVidia GPU in the same laptop. nVidia calls this combination Optimus.
Under Optimus, the Intel GPU is used by default for graphically light usage, meaning Web browsing, spreadsheets, homework, taxes, programming (other than 3D applications), watching video, etc. -- since it's low-power, you get good battery life.
When it's time to play games, of course, the driver can switch on the nVidia GPU -- hopefully near a power outlet.
I think Optimus technology has been available for over two years. However, nVidia's Linux drivers do not yet support it, leading to much gnashing of teeth, and the third-party Bumblebee solution which I discuss in another comment [2].