From Bats in the Attic:
If tabletop roleplaying is to compete then it needs to emphasis the elements that are unique to it alone. Namely the human referee and how easy it is to let the imagination roam free with the human referee interacting with his players. Just as important making it easy for players to find one another.
Let me "mod this comment up."
Video games did not kill pencil and paper role playing, but they did make the marketplace for children's attention more crowded. What drives me back to thinks like D&D and Interactive Fiction is that both rely on the imaginations of the players. No pre-canned MMO or even CRPG can really touch that.