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1. GPU will soon be redefined as Game Processing Units. They'll take care of both rendering and physics (and AI if I can add).
2. Like Vertex Shader, Geometry shader and Pixel shader, we'll soon have physics shaders (and AI shaders may be).
Point 1 would mean that the GPU would only use some small percentage of their capacity which could be used by other system, right? In my opinion this is far from true. If I would tell our graphics programmers that I am taking some of their precious shiny pixel time I would get into serious problems

. If you give a graphics programmer more power he will use it. Also graphics and gameplay run often asynchronously.
Saying this, I can imagine that the GPU will be used for more advanced particle effects which are more physics based. I can even imagine basic rigid body effects. Erwin has recently presented some amazing stuff with Bullet here in our office. I could imagine these things to coexist, but I am not seeing one replacing the other.