There really isn't any other software to compete at this point. Aviary and Gimp were the only Photoshop competitors. Inkscape and Aviary were the only Illustrator competitors.
Instead we are heading towards vectors as the primary asset which means toward visual editors that allow for scripting and much more granular control off assets such as animiation.
In 5-10 years ex. Sketch and other much more dynamic environments will be one of the de-facto standards as the older generations retire and the new ones come in.
Photoshop is the Quark of our time and it's heading for retirement I think.
P.S. I am part of the older generation and still uses Illustrator and sometimes Photoshop. I loved Fireworks but Adobe killed it.
However, having played around with Sketch I think I see where things are heading.
Sure photo editing is one use for it. But much of it is in creating icons, mockups, non photo realistic things, and more.
Second, even if "most people" used Microsoft Word to build web pages I wouldn't treat it like a web IDE.
But you know being a designer having worked with designers, having had a large design agency and done some work for Adobe I do consider myself fairly informed on the matter.
Whether you wanted to consider it a web IDE is besides the point. I remember the days when notepad was considered the gold standard.
If it helps you get the work done who care about what it was supposed to help them with.
You are however missing the point here.
Photoshop is being used for web design and app design as much if not more and have also added things like vectors to it's suite of tools to reflect that.
It's has nothing to do with whether bitmap editing goes aware but with what is going to be the de facto standard. If anything post-processing of images have removed much of the need for the core functionality of photoshop and will be easily re-produced by other editors.
You know I don't mind being downvoted if I talk about things I have no idea about and which are flat out wrong.
But please tell me why this comment deserve a down-vote?
I know the Product Design market may not be one of Adobe's bigger ones but it's refreshing to see it being used less and less.