The new SKUs will have a 65 W TDP with Iris Pro 580 graphics designed for desktops, AiOs, and workstations.
http://www.notebookcheck.net/Intel-introduces-three-Skylake-R-class-processors.165201.0.html
We just finished assembling an i5-6600k overclockable CPU with ATI Rx480 graphics card for the cost of about the i7-6785. I don't think the i7-6785 can touch our system. I wonder what Intel is smoking with this pricing for a crippled, BGA processor that cannot be upgraded.
There will always be demand for overpriced stuff. Some brains stop working when they see "i7" even if more powerful gaming machines can be built for the same budget with an i5 inside...