I read about this earlier today. If it is correct that there will be "no DirectX support" then they`re looking at a different market for them.
But knowing Intel, there will be a darn good reason why they`re doing what they`re doing.
No OpenGl, Console ? Mac ?
.. but on the other hand, until a release news article direct from Intel spans out the map for Larrabee, I`ll still think of it as a rumor or a misquote.