That is so ridiculous. There are essentially no graphics in GH, just gameplay. That may be a little harsh but the character models certainly don't look nearly as good as other current games. As far as the system reqs, it's just hard to believe they're that high, I don't see any reason a Core Duo shouldn't be able to run GH just fine.
Most likely it is due to GPU's being better at rendering grahpics than CPU's. With the GMA950 sucking as badly as it does, I wouldn't expect it to keep up. There could be tons of tricks that are being done that if defaulting to CPU would slow the game itself down to be unplayable. After all the game is one of timing and if the graphics/music stutter too badly it makes the game unfun.