Unless I'm misinterpreting the intent, it doesn't make sense to me. Painting wasn't replaced?

As the main "reproduction of reality" it was. No one would take a painted portrait of their dad out and say "this is my dad" anymore

It kind of did - the vast majority of the jobs done by painters were actually replaced; painting in general and painting as fine art continued on but the vast majority of painting which was done for mundane decorative purposes effectively shrunk away, as did most of the "portraiting" industry; in some cases people still order their portraits (e.g. the gallery of presidents) but is far scarcer and employs far less painters, as for this "job" painting was replaced by photography.