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We may very well be "kicked down" to #2, but it would be more accurate to say "kicked up" to #2, because Pathfinder continues to grow and sell more and more Core Rulebooks. This quarter we are in right now, the one where D&D 5e is releasing, will see us sell more Beginner's Boxes and Core Rulebooks than any other quarter outside of the ones the two products were released in!
It seems pretty clear to me that D&D5 is going to scratch an itch for some customers that wouldn't be interested in Pathfinder. Different strokes for different folks. I don't think there is all that much overlap between our two markets, which is great for roleplaying games, since that means more people playing RPGs. If we were just divvying up the same shrinking pie, then it would be a losing situation for all. But for my vantage, it seems like RPGs are growing. I know that Pathfinder sure is!
Well, Pathfinder lost me. Customers come and go, absolutely. But, some little things lead by some huge recent moves just ended my enjoyment of the system. Primarly, I can't escape the feeling that PFS is dictating the future direction of Pathfinder at large more and more. Many genuinely unique things got trashed like Crane Wing all because of PFS complaints. The two should be separate. The thing with spells known also smells of the same situation. It all seems to work toward a generalizing of the system skewing towards more of what 4E was.
Also, the manner of sweeping nature of those changes by way of errata rather than making them really work with a new system with staff comments here and there makes me think Paizo will evolve Pathfinder rather than releasing a new edition. Thus, there is no permanence or sense of mastery of the system since what the system is can and will change based on the needs of the moment rather than what works with the system overall.
A minor nitpick has been the recent book styling. Part of what drew me in to the aesthetics of the CRB was that 'old tome' page design. The new style isn't bad. It's just not what hooked me. In relation to the above points this is incredibly minor.
Anyway, I hope you see this as I've thoroughly enjoyed Pathfinder since beta. My introduction was literally during a 3.5 session with my DM dragging our characters through a portal into Golarion where we then made Pathfinder versions of our characters with beta rules. That was cool. I'm sure you do get tons of feedback how awesome Pathfinder is. It really is. The shakiness is something I can't accept from an expensive hobby. Looking at 5th presents a system that is flavorful, concise, and feels genuinely evolutionary in its concepts. I understand that Paizo has a lot invested into what Pathfinder currently is, but I hope you find the courage to really create your own niche and try to solve all those pesky problems that make you feel like you need to change the base system to cater to a vocal minority of your customers.
All the best.