Or put another way, it isn't yet commercially obsolete, but it is technically obsolete.
Newer codecs basically exist because video resolutions outpace storage space (for questionable benefits).
MPEG2, much like MP3, are "good enough" for most common usage.
Pop quiz hotshots, why did the CD become a big hit, but the DVD-A died a quiet death?
Answer, because there was no convenience to be had with upgrading!
The CD was a massive improvement of convenience over the cassette tape or LP record. Now you could instantly find the one song you wanted, and skip between them with the push of a button.
Similarly there is no convenience upgrade to go from MP3 to FLAC or some other audio format.
And the same pattern plays out with video.
DVD video was a smash hit because no more having to rewind that VHS, and they took up a whole lot less space on the shelf (buying a TV series season on VHS was downright crazy for the physical space it would require).
BR and similar is simply not enough of a convenience upgrade.
If anything, DVD-A was a convenience _downgrade_. People already had CD players (and upgrading to DVD-A would provide little-to-no audible upgrade anyway), plus you have copy-protection controlling acceptable output formats and preventing ripping.
Personally, I see the benefit in 4K having a setup to take advantage of it.
One could definitely take parts of MPEG1 and MPEG2 to create a new good enough codec for many use cases.
Well people did exactly that - and they named it:
- MPEG-4 Part 2 (also known under names like DivX, Xvid, ...)
- MPEG-4 Part 11 (also known as AVC, H.264, ...)
- VP8
- VP9
- AV1
- MPEG-H Part 2 (also known as HEVC, H.265)
Those are all codecs that build on and extend what MPEG-2 is.