I don't know enough about the timeline to say, though I feel it may be a bit of overreach to have that level of certainty, as it does presume everything goes swimmingly with Llano and Intel's equivalents during that time period (it seems unlikely that there will be massive problems, though).
The arguments for the ending of the low-end discrete segment are strong.
Llano's on-chip GPU will end the need for motherboard graphics chips for the AMD platform.
Cheap graphics boards do not have stratospheric memory bandwidth numbers, due to cost and limited need.
Without the major lead that higher-end boards have in memory bandwidth, Llano's GPU won't compete in the higher segments. The value end has bus widths comparable to a CPU, and the cheapo RAM they do use is sometimes the same grade as what is used for a PC.
Outside possibly some kind of niche multimedia features or the need to update old systems, Llano's GPU will be sufficient, and potentially superior to the low-end discrete cards.
As far as costs go, system builders for the low to possibly lower-mid range could skip the GPU component completely. Motherboard complexity will likely go up somewhat with the larger socket and extra output needed, but that can achieve much better economies of scale than multiple tiers or slightly different cards.
This might be made up for by possibly reducing the high lane-count graphics slots or removing the extra space mobile products set aside for a separate package and DRAM.
Even if Via and Nvidia teamed up, Via's minimal CPU presence is not going to bring the volumes of AMD or Intel's similar efforts, hence Nvidia's hopes for opening up any kind of market outside of the traditional fields.
edit:
Later on he added some posts about the effect the lower-end Evergreen variants are having on Nvidia, which is a factor that would be having immediate effects.