I don't think MPE is the end of the road, though. It'll probably be replaced eventually by something that was designed from the start to do the kinds of things that MPE is for. I'm not entirely convinced that MIDI 2.0 is the MPE replacement I'm looking for. Maybe someone will just invent something entirely new.
(I have some thoughts in that direction that I plan on publishing eventually, not so much in the "hey look, here's a new protocol everyone ought to use" sense, but more like "if you were going to design a music protocol to do what MPE does but better, this is an example of what it could look like".)
But having 32 instead of 7 bits for pitch will give better pitch resolution, no? Or am I misunderstanding something?