Hi, I think the problem is in switcheroo. I am running nVidia's proprietary for the 3D, but nouveau worked fine with the computer bios in "compatibility" so only the nVidia card was used.
About your question why the card is shown in lspci while vgaswitcheroo says it is off, you are really beyond my technical knowledge with that question, but hazarding a guess, I suppose some part (BUS / BIOS / something) should still know it's there to be able to power it up again when requested. Not sure if lspci should be aware of it though.
Development still going on for the intel / nVidia hybrid gpu mix:
---------- Post added at 07:42 AM CDT ---------- Previous post was at 07:38 AM CDT ----------
Also, to relate to your observation that lspci shows your dedicated graphics card when it should be "OFF" :
I made some tests myself with the card "OFF" and measured power consumption with "powertop".
I couldn't see any real difference with the card "ON" or "OFF". A plausible explanation can be that the card never switched off.