That performance is not surprising, Arc seems pretty dope in general.

I hadn't realized that "Arc" and "Integrated" overlapped, I thought that brand and that level of power was only being used on discrete cards.

I do think that integrated Arc will probably be killed by this deal though, not for being bad as it's obviously great, rather for being a way for Intel to cut costs with no downsides for Intel. If they can make RTX iGPUs now, and the Nvidia and RTX brand being the strongest in the gaming space... Intel isn't going to invest the money in continuing to develop Arc, even if Nvidia made it clear that they don't care, it just doesn't make any business sense now.

That is a loss for the cause of gaming competition. Although having Nvidia prop up Intel may prove to be a win for competition in terms of silicon in general versus them being sold off in parts, which could be a real possibility it seems.