No, it will not. Oyster is run by TfL, ITSO is driven by the DfT but each TOC maintains its own scheme which is owned by the 'franchise'. As a franchise changes, the scheme will carry over with it.Let us not forget that in due course, ITSO will replace Oyster (this is, I think, already happening with ITSO on Prestige).
The only way ITSO will replace Oyster is if TfL themselves start an ITSO scheme to replace Oyster. It is clear to me, from my time working at ITSO, that the chances of this occurring are not exactly high. Oyster's main market is low market "pay as you go" transactions which can easily be transplanted straight onto EMV wave and pay.
They will hold both hold representations of the same products, but not the same. In any case, 19(c) continues to apply which appears to be the main cause of debate in this thread. The demand of touching in and out is pretty moot while the infrastructure in place can't even manage break of journey in 99% of cases - something that clearly the railway needs. To my knowledge, the infrastructure to validate a journey (i.e. touch in) can be done by a guard if it is implemented on their handheld reader.This should ultimately mean that the same ITSO card can hold both products.
Nevertheless, if you hold a valid ticket for your journey, whether electronic or on a piece of cardboard, it should be considered as valid.
Quite.Recall that Oyster and ITSO are just mediums, the same as a piece of card