this is all a bit sensationalist and unrealistic, to be honest.
first of all, there are plenty of alternatives to mp3s that offer better sound. of course, better sound means less compression, which in turn means larger filesize. so right away your scheme is starting to fail.
but moreover, mp3s are very well established. if a new format does start to take hold, it will be years before it becomes standard. think VHS/DVD. or imagine trying to replace formats like jpg, txt, or pdf. but mp3 is even more set in stone because of hardware players that other filetypes really don't use. you think millions of people are just going to dump their costly mp3 players, just because something ew came along?
as for mp3 "taking the world by storm", that's a major exxageration. while some people were grabbing files from napster and putting them on their mp3 players as early as 1998 (like me!), most people didn't jump on the mp3 bandwagon until many years later. in the mean time, minidisk (the "cd killer") made a big deut, then faded about a year later. i have one of the first models gathering dust in my closet someplace...
so yeah, it sounds nice and all, but really, nothing is going to change for a while...