NFT VS RWA
There is a physical boundary that the digital representations of assets cannot cross.
The average NFT is still a long way to completely replace physical goods in many ways, for it must stimulate most if not all 5 senses in one way or another.
A person cannot savour/taste digital food, or wear NFT items (like avatars do), nor you can mobilize with a digital car or sleep in a virtual house.
RWA tokenization is meant to solve this, by dedicating to digital representation of ownership of assets, specially physical ones, such as realstate, goods (products, art, securities, bonds).
Demand for digital only NFTs (e.g gaming items, collectibles) will not be necessarily affected by the emergence of alternative. However, the NFT platforms will not benefit directly, since tokenization can be done at a low level with development kits provided by the BLOCKCHAIN PROJECTS ($ETH $SOL ) themselves. Therefore the most basic utility tokens are the ones that will absorb the capital influx.