Will SoC completely replace generalized microcontrollers?



I am wondering if the SoC, such as ARM/AMBA architecture will make all
kinds of generalized
microcontrollers (like PIC) obsolete. In SoC a whole system with
upgradeable hardware modules/ IP cores can be stuffed into a single
chip, how can generalized microcontrollers compete with that?
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).
Lets say a few useful additions to a traffic light could be:
a) video camera and remote alerts for speeders
b) array radar sensing of speeding cars & reporting their position via
GPS.
c) scene analysis via real-time video and calling ambulance if anyone
is hurt, etc...
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 a simple system.

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

.



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