Yes, I think this is great news for digital currency technology, broadly speaking, but bad news for Bitcoin specifically.
Just like the PC was a great thing for computing, but very bad for mainframes.
It's great that Bitcoin has created this market for us, but it's time has passed.
Your comparison between PC and mainframe computers is not compatible with Bitcoin and any other competitor. Did the dollar become obsolete because a new currency was created? How many companies or governments have considered buying and holding any altcoins. Bitcoin is at a level that will take competitors decades to reach.