He has been replaced. Hamilton will be the driver to dominate over the next 10 years. One thing that should be remember is that no driver is bigger than the team. It was a team game that kept Schumacher at the top, not just his driving skill.
Hamilton will not be the driver to replace Schumacher, no matter how hard Martin Whitmarsh & co. wish it to happen.
Michael Schumacher would have taken the title this year if he had been racing in Hamilton's conditions. In fact, I would venture to say that many of the great drivers from the past would have taken it in the same circumstances, although it's really something we'll never know.
All we can do is watch the next few seasons and see whether Hamilton is capable of becoming world champion just once--for starters.
Too much hype and not enough substance yielded the result we all saw. Don't worry, it won't be next year either. I'd put my money on Raikkonen or Massa (and I'm not a Ferrari fan), unless Renault get away without a penalty (I doubt that will happen) and someone takes his six tenths to a much improved car.