Klaus,
What I mean by modular is the way dual core (or multicore) CPUs are modular. Each core is almost a standalone module (core) plugs into an on-die infrustructure. It plugs into the System Request Queue.
By modular graphics module, I would expect GPU to be standalone, self-contained GPU processing engine that plugs into on-die infrastructure for memory access and I/O.
What I meant by integrated would be a merged CPU/GPU core, with number of processing pipelines that can interchangeably process graphics related or CPU related instructions.
That would certainly be a huge undertaking, and a very risky one. Stretching the schedule (ETA) of the Fusion chip could either mean waiting for appropriate process technology, or there is an outside chance of some more ambitious project with some integration in mind.
Analogy here would be the way FPU started as a separate chip, moved to somewhat clumsy x87 FPU, to SSE with more direct communication to the between the registers.
Joe