It's certainly going to take a major chunk of the MF market out, but it won't kill it. There will always be a need for super resolving cameras, especially in fashion and commercial product photography. If you're going to take a photo of a tube of lipstick, blow it up to 8x6 feet, and then put it in a back lit display at a couple of hundred department stores, you want the most resolution you can possibly get.
For most needs, the 1Ds MkII had more than enough resolution. I don't see the rush that happened when they went from the 1Ds to the 1Ds MKII. It's not that much of a jump in resolution, and the studio and portrait guys it's aimed at don't need the hopped up autofocus and live view features as much as the news and sports photographers that 1D is aimed at.
David Buzzard's Technical Blog