The same can be levelled at mini disc which was sposed to replace CDs,but never really caught on!

No format will replace another unless its significantly better & is affordable!
That said,it will only become affordable when it is popular so you have a kind of catch 22 (thats why DVD players are so cheap now yet mini disc players are still quite expensive).

Simply put,if your product is so much better than the product it is to replace,it will initially sell to people who are willing to spend out lots of cash,then people who cant afford the original price will benefit as prices come down!
If your product isnt that far of an advance,then most people wont bother buying it at all!

Now recordable DVD players are available & are rapidly dropping in price we could start seeing the phasing out of vhs!