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https://steamcommunity.com/app/208650/discussions/0/2260187517788950845/
That's not integrated, it's a new dedicated Intel GPU.
I checked it earlier and saw a mention of 4GB of memory but now that I'm checking it what you're saying is true. So yeah, just generally too weak.
I don't think Intel is really intending to take on NVIDIA in the performance sector, but their technology is very forward looking. Remember Larrabee? The X86 based GPGPU? It was a fantastic idea, but ultimately was more of a side grade then anything else.
Anyway, when it comes to the IRIS, I think the problem is more the lack of support for the GPU, the game can probably still be made to run on it, but I doubt RS is going to bother adding the support. The solution to the lack of dedicated graphics memory is to load up on DDR4 (Most laptops can support up to 64GB Now), and allocate as much as possible to the graphics.