Basically, the integrated Intel video is for the desktop and non-DirectX stuff. The NVIDIA GPU kicks in for 3D rendering and, as you said, other things, perhaps video. But you would be surprised, the integrated Intel video cards have become a lot stronger and most can render video at this point. The NVIDIA card is in there for GPU-intensive tasks such as gaming or rendering 3D models. Sadly, these cards are always a bit of a generation or two (or three) behind the cutting edge stuff like the 1080i. A big problem seems to be power consumption and miniaturization.
I should add that on much more "beefed-out" gaming laptops, these cards are extraordinarily better. I think the NVIDIA 1080 laptop version is supposed to be almost equivelent to the desktop card, but I could be wrong. So progress has been made in this area. But good luck getting a laptop with that card without breaking the bank!