IMO describing Rust as a "C replacement" is slightly off the mark because Rust's value proposition is very different from C. Rust is about giving you the best possible performance in a safe-by-default language. C is about giving you maximal control over memory, with a very thin layer of abstraction over the hardware.
C has traditionally been used in a lot of places where Rust's USPs add a lot of value -- for instance in kernel development -- simply because there wasn't a safe alternative. However I think there are other cases where the strengths of C still add value; for instance in game development you're largely trying to do high-throughput processing over large swaths of structured data, and Rust concepts which help safety like RAII just get in your way. Yes there are ways to get around this in Rust, but Rust is not really optimized for structured, manual memory management.
As a result I think there is plenty of room for something like C which just has better ergonomics and some more modern features.