Paper money have not that bad future and that is because there are now here still a lot of people that dont even know about Bitcoin and that is why they are using still their paper money as their payment method. And of course you can see that people is going to use Bitcoin more and that it also becomes more popular but it wont replace it.
You are very much right. I think exactly the same. There is hardly any chance that we will be able to see a cashless society. I think both are equally important and have their own audience. Yes this might be possible that we can expect to have little less use of paper money in near future but it cannot be vanished from the society.