Two key problems for megapixel cameras are (1) their substantially increased cost relative to analog cameras and (2) the complexity of using IP.
For the high end, this is not a problem. Indeed, the use of IP can be a benefit for larger corporations.
However, for the lower end, the 'budget' segment, cost and complexity are a significant barrier (even inexpensive 1080p cameras like the Vivotek IP7161 are twice the cost of an analog camera). Indeed, the traditional strength of Everfocus is providing inexpensive basic products like $1,000 USD 16 channel DVRs for this part of the market.
With the recent launch of the HDcctv Alliance and Everfocus' key role, Everfocus is positioning itself to be at the forefront of simple and inexpensive megapixel solutions.
At the lower end of market, I believe that Everfocus has a strong chance to accomplish this and dent the expansion of IP into this portion of the market.