Obsolete is a funny word in this context. Its true that Moore's law is continuing its relentless march, making a 3 year old computer about 4 times "different" than a new one. And we can either have the same performance for a tiny fraction of the cost, or more realistically, the same price buys 3 to 4 times the performance.
I have something like 20 computers in my house. Many are servers providing web hosting on the Internet. Some of these computers are old, 4, 5, some even 8 years old. But they still work, so while they are economically obsolete, they are doing their jobs and are by no means "obsolete" functionally.
Inexpensive cameras, both P&S and entry-level DSLRs are little more than a box to hold a sensor, computer and a lens. Many P&S don't even have an optical viewfinder -- they use a view screen, the same screens sold in the hundreds of millions for cell phones. So the screens improve with Moore's laws, as to the sensors and CPUs. The box doesn't improve much, but who cares.
As @mattm said, its really your choice, is it obsolete for you. This is if you focus on your particular P&S. But as a larger issue, the concept of a P&S is essentially dead. People take photos with their smartphones. The old law that the best camera is the one you have with you holds. You have a smartphone in your pocket. To replace that with another camera, it has to be very special. So far, none of the pocket P&S are special.
There are two P&S with Android, and soon there will be more with full cell-phone data access. These have a chance to have better optics and larger sensors than will fit in a smartphone. But even if the product line stays alive, it will be an ever shrinking niche market.
My wife uses a Canon S95 P&S, and she loves it. She'll probably use it at least another 5 years.
So what does the word "obsolete" mean?