For some of us, it replaces everything that we need.
For many of us, no single camera can do everything that we need very well. Different use cases require different tools.
In may ways, an R5 (or even an R6) + an R7 works better than a single R1 might, even though the R1 will very likely cost more than an R5 + R7 combined. Even an R6 + R7 may work better and cost about the same as a single R5 for those who need to shoot with different lenses mounted on two bodies at the same time.
It's not much different than how much better even a mid-grade normal zoom (24-70/4) + a mid-grade telephoto zoom (70-200/4), maybe even from a third party like Tamron or Sigma, will serve most of us better than a single 28-300mm/3.5-5.6L that costs more than the other two combined.
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