Hard drives didn't completely eliminate tape either, but they did chase it off into specialized applications where capacity was more important than speed. Flash will do the same thing to magnetic storage. Superior power consumption, form-factor, and speed will eventually push magnetic storage out of consumer devices. Most people can get by perfectly well with the SSD capacities available today, much less the drives that will be available in ten years.
Also, flash has better shock resistance than hard drives do. This is important as we have more and more on the go laptops.