Will SoC completely replace generalized microcontrollers?

I am wondering if the SoC (ARM/AMBA architecture) (where a
whole system with upgradeable hardware modules/ IP cores can be stuffed
inside a single chip) will make all kinds of generalized
microcontrollers (like PIC) obsolete.
When PIC microcontrollers are used, they often need external hardware
to help them, DSP blocks cannot be integrated into the chip at will
(its all up to Microchip, whatever they decide to include in a chip).
Just seems to me like SoC will eventually replace every MCU based
system, because of the processing power, and application-specific
flexibility in hardware. And almost all systems can use extra
processing power, capabilities & etc.
Maybe a traffic light with video camera and remote alerts for
speeders + array radar sensing of speeding cars & reporting their
position via GPS. I'm not saying that developing a supercomputing
traffic light is a very high priority task, just using it as an
illustration of stuffing more capability into into a simple system.

What would be the problem will be with replacing almost all MCU-based
systems with SoC?

.

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