Tape is great for archive purposes. It would be a shame if LTO dies.
The biggest threat to LTO is the lack of vendors developing drives. At this time only very few companies do R&D for tape devices. IBM, HP and Oracle are the only serious players.
Oracle develops only Enterprise class drives (T10K), not LTO. The market for those drives is quite small, which means the R&D cost needs to be recovered from a relatively low volume. That makes them bl**dy expensive.
HP develops LTO. They have to do R&D for LTO only, as they have no enterprise class drives. LTO is considered commodity so margins are too low to spend a lot on R&D. They will therefor struggle to be cost effective.
IBM develops both an enterprise class (Jaguar) and LTO tape drives. From a tech perspective, IBM are in the best position, as they can develop new technology for their enterprise drives, recoup cost in that segment, and then commoditize the technology in their LTO drives. Unfortunately IBM no longer wants to be a hardware company.
This does not bode well for tape technology in general. I've made a good living from it writing software for tape drives, but I guess all good things come to an end.