It was only around a few years until it was made obsolete by mobile phones which became small enough to fit in a pocket too. But it looks like it lasted a lot longer than the UK variants of this system did. I think this is because the mobile networks were way too costly at first. Kermit was the poor man's mobile.
The hardware was also different, Kermit used pretty thin flip phones that, like Rabbit, were also very popular as home phones.