
Urath DM |

Let me put it this way...
Instead of just updating the Campaign Setting from 3.5 rules to Pathfinder, a new book named the Inner Sea World Guide was created. A large proportion of the material in the Inner Sea World Guide came from the Campaign Setting.. and more was added.
There may be some material in the Campaign Setting that is not in the Inner Sea World Guide, but that is mostly because:
a) it was already updated elsewhere (Core Rulebook has most of the the weapons and armor, for example, and the Adventurer's Armory has the others)
b) it was something that the folks at Paizo prefer to just let fade away and have no intention of following up on
c) it was a specific thing for 3.5 that is now either built into the Pathfinder rules, or is no longer needed
So, generally, the Inner Sea World Guide replaces the Campaign Setting for 95% of all uses. If you have a "completist" streak and just like to own "complete sets" of everything, then you may want it.. but it is a little pricey.
So what is in the Campaign Setting that is not in the Inner Sea World Guide (or any other book yet that I know of)?
1) Pronunciation Guide
2) World map with adventure locations (up through August 2008)
3) four NPCs
4) Random Encounter Tables by terrain (outdated for use today; the AP volumes sometimes have region-specific encounter tables)

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Inner Sea World Guide is indeed meant to replace the Campaign Setting hardcover. A lot of content was revised, changed, or just abandoned in the transition, as we had the luxury of time and a greater understanding of how Golarion works (and what DOESN'T work in the setting) when we did the revision to the book.
The Campaign Setting hardcover, as a result, is pretty much obsolete. Although still valuable to collectors of Golarion material... perhaps more so, I guess, depending on your frame of mind.