personally, i think there both here to stay. the only real problem i see at this time is most companies think that they need to charge an arm and a leg for the little .17, both in the guns and ammo. now,realistically, MOST people will never get a chance to shoot a 100 yard shot with EITHER gun at small game (alot of that depending on geographic location).
what i would really like to see is a company build a bolt action rifle with INTERCHANGABLE BARRELS , and include the .22 mag AND the .17 HMR ( which would be extremely easy to do). both being about the same size.
as a firearms dealer, ive had the oprotunity to own/shoot both calibers for quite some time, and have to say,while the .17HMR is an extremely accurate round, i also prefer the downrange punch of the .22 magnum. the .22 mag also comes in a super wide range of loadings/bullets to fill just about every need.
something else you need to look at, sort of a "what if" story.
how many of you have went on a hunting trip and found once you got there, in all of the exitement to get out the door, you've forgotten ammo? personally, i never have, but know a couple of guys who have. most places you go, at the very least, there will be a mom and pop type store that will have alot of different types of amunition just in case you find yourself in this sort of situatuion,, but how many do you think will actually carry the 17HMR? notmany as most mom and pop type store only carry the most popular calibers of ammo, and dont really care to carry stuff that will not sell very fast. also, even at wholesale prices, most mom and pop stores operate on a strict budget and cant afford the higher price of the 17HMR, just to have it sit there at 10.00+ a box and gather dust.
both calibers are great, but i think in MOST cases, the .22 magnum will trump the .17HMR in every way