SR-IOV doesn't sell consumer cards, are you expecting Intel to produce an expensive XEON equivalent of Arc?
I'd expect them to attempt capturing some LLM market share by loading up the cards with RAM rather than expending effort on niche features.
SR-IOV would sell more cards than Intel would be able to sell if they charged market rate for their GPUs. Same goes for not selling a local LLM high VRAM variant. Intel is just allergic to competing by offering a USP.
AMD Ryzen CPUs have ECC enabled but not officially supported. Intel still locks away the feature.