Optical zoom will always outperform digital zoom, and there aren't yet many smartphones with optical zoom (and those that do look like the neighbor kid's toys on Toy Story), so smartphones haven't yet replaced, for example, the $90 Canon PowerShot A2200.
Of course people know the $90 A2200 has better IQ. Years ago people use P&S camera because of the convenience. Now they have better choices, smartphones, because it's much more convenient. If they really care about IQ, they probably use dSLR already. Nokia phone has 40MP camera, Sony phone has 20MP camera, and now Samsung phone has 16MP camera. In two years every phone maker will have build-in 20MP+ camera. I can see most people don't need a P&S camera in few years. Canon should make FF attachable Lens-style camera like Sony QX10/QX100. I think that's the future of the P&S.