I think there will always be hand-quilters in the same way people will always hand embroider, even though there are now machines for that too. I recently took an online hand quilting class. Here is the link to my finished piece. I enjoyed doing it and would do it again on the right quilt.
http://www.quiltingboard.com/picture...g-t164427.html
I think machine quilting and hand quilting are different, and I don't see one as being in competition with the other. I like the look of machine quilting for some quilts, but think hand quilting is preferable for others, and vice versa. Just as food processors will never make knives obsolete, quilting machines will never replace hand quilting. Each has its place.