People say the excuse of "this isn't a gaming device"... well why shouldn't it be able to play games for the price it costs? The built in Haswell chip is garbage, it cannot do anything on x86 and is totally inadequate for the device it is on.
It isn't a gaming device. It has integrated graphics, just like pretty much any device in its class.
MacBook Air? No discrete option.
Most other ultrabooks? Intel HD whatever, 4400, 5000, whatevs.
The money is going towards the design, the compact design and other non-gaming things.
I/You wouldn't purchase a more gaming oriented laptop and proceed to complain about how its not as svelte as a Surface or MacBook now would we?
Sorry, but there is no miracle device that can do literally everything, maybe in the future, but there's no running Crysis maxed out at native resolution in a dinky tablet just yet.
My Surface works just fine for what I need. Starcraft II? Ready to rollout. Planetside 2? Deploying. Minecraft? Break out the blocks. Halo 2? I need a weapon.
At max settings? Well... no.
The hardware is not the most powerful (what can you expect, this class of device prioritizes size and efficiency rather than raw horsepower since it has a more limited thermal/power budget than, say, a desktop.) but by no means is it garbage. (I can show you actual garbage if you'd like though.)
Dial back the hyperbole a few hundred notches too.
As for your CS:GO being based on a 10 year old engine, are you saying that engine hasn't been upgraded in 10 years? 10+ year old games (Halo, Half-Life, Half-Life 2 & Episodes) worked flawlessly on systems I've had that are weaker than the Surface Pro. (Halo 2 was playable, flys on the Pro.)
GO does not look like a 10 year old game.
Also, the display has a lot of pixels, don't run it native resolution. Kick the resolution down in the settings, it'll run better. Same for any similar computer.