I'll upvote this. "highly unusable, annoying, and overall bad design" seems to be an accurate description.
For anyone else having this problem, here's how to disable it:
1) Go to Start menu, search for services.msc.
2 )Find the "Service for Intel(R) HD Graphics Control Panel" service.
3) Disable it (open it's properties, stop it AND make sure to set its' startup type to "Disabled")
4) Open the task manager and kill all processes with names that start with "igfx".
Voila. It's gone. Use system dialogs if you need to change the graphics settings.
No thanks to you, Intel.