I don’t think meaningful discussions can be had unless, we have some common currency. If not, good art historical knowledge. At least, what we mean by phrases like “traditional art”. For my part, I take it to mean, the use of non digital media, " New Art Forms". Cinema perhaps, introduces the element of time. We can also realistically speculate about entirely immersive forms such as the “matrix” style direct neural interface that you mentioned.
I agree I consider Traditional art meaning the use of nondigital media. Anything that involves the computer isn’t something i consider traditional. You also mention later integration of traditonal art into cinema, however, if the soul purpose of the art was to just show on TV, I would not consider that traditional art, merely interiordesign, decoration, or a subdivision of the building architecture.
None of the above changes the intrinsic drive in human beings to creativity. To say that creativity is driven by the desire for money is simply not accurate. People will make Art whether they are paid, or not.
I didnt say Creativity is driven by the desire for money. However, I believe that many who made breakthroughs in teh traditional art forms, discovered they were creative, and would later use that to benefit themselves in the real world. I’m sorry, but I don’t think anyone is that good that they will choose a job that denies good benefits or cash. I believe a truly good person is one who admits his own faults rather then cover them up claiming they don’t have any faults. I’ll not go into too much detail beyond that so i might avoid another giant essay. 
Here is proof that creativity is oftentimes driven desire for money(WITHIN this own forum nonetheless). Many of the artists even admit that they accept the job because overall, they make more money in that job then they could anywhere else. Im not saying its the most dominant factor, or that a person doesn’t love creating…if they dont love art or creating they shouldn’t be in the business anyway, but to deny the fact of money/benefits is hogwash. This direct link is related to a CG topic, however if people chose a well-paid lifestyle in one form of art it will happen in all forms of art.
http://forums.cgsociety.org/showthread.php?t=261962
How many users of this forum are hobbyists, producing work of an exceptionally high standard, without the incentive of a fat paycheck?
IF its a hobby, its not your main business practice, hence its not really a major determining factor in the life of the art.
What we use to create with, is simply a matter of preference.
What we use alone isn’t something I would consider determines the art. If someone’s medium is charcoal, that does not make it traditional art IMO. It still has to have some relation to the art forms of traditional art. I love to create using pencils, different inks, regardless of what its in, brush or pen, but I Would never consider what I create to be considered traditional art. At best I might consider some of them realist landscapes, anatomically correct studies of human anatomy. I believe each of the branches in traditional art has to deal with the medium, a little imagination, the stroke, sculpting, etc. type, and the boundaries set by the original creators of that art form.
Things like conceptual or novel illustration, concept art, 2d handdrawn and painted animations, flipbooks, etc. I would never consider a form of traditional art. I believe they branched off from traditional art, but are an entirely different artform themselves. I don’t know many people who consider those things traditional art either, and I know of no consumer who does.
Art has come a long way in the past hundred years, and has been intrinsically bound to the sociopolitical climate of it’s time. Here’s a few things you can look up: Impressionism, Fauvism, Constructivism, Futurism, De Stijl, The Bauhaus, Cubism, German Expressionism, Die Bruke, Dada, Surrealism, Abstract expressionism and Pop Art. See if you can find some more to add to the list.
Ukiyo-e…I believe that is a traditional artform. THere is also another in the region of India, but I forget the name of it and am too tired atm to go searching for the name. 
PSR nailed it. 
No medium ever has to replace another.
Thats true…they don’t HAVE to…but they do.
Language itself is an artform…and many languages have disappeared without understanding or reemergence. For example the language of Aramaic. No one knows the actual language anymore, but fragments of it are all lying around. There have been many other forgotten languages im sure of. Dorian language(i think that was how it was spelled) I believe was also forgotten…and they were the first beings to ever create a form of currency in the world. Living in the few centuries after prehistoria in the Northeastern corner of the mesopotamian world.
Many different forms of heiroglyphics, architecture, and symbol/lithography styles have been forgotten as well. Certainly some lithography styles are still around, but some previous ones had names and branches entirely of their own, which disappeared forever. They didn’t have to, but progress was made and they just did.
In terms of sciences, various forms of metallurgy, and smithing have been forgotten since ancient times. Once again they didnt have to, but new more effecient enhancements were made, better weapons or tools were built, and this all led to their inevitable demise.
This should give you more an idea of where I’m trying to come from. That idea about common currency certainly will be more constructive on people’s theories PSR. As long as we keep that in mind. 