Looks to me like the $200 Million is a drop in the bucket compared to what's being paid for the SLS and Orion. I do wonder that if SpaceX get their man-rated Dragon flying if NASA will continue funding this?
Sadly not. Even once Falcon Heavy is operational, SLS will be bigger - significant if you're launching big science projects (like telescopes with big mirrors) that can't be assembled in orbit across multiple launches.
Additionally, even if FH matched SLS for size, NASA would want two systems available for redundancy in the event there was a problem with SpaceX. It's the same reason ULA continue to offer both Delta IV and Atlas V - two vehicles, designed independently, using different engines, etc (notably, Delta IV uses embargo-proof American engines, not Russian RD180s).
Once ULA's Vulcan vehicle and/or Blue Origin's New Glenn become available, then maybe they can take SLS out behind the fuel stores and put it to sleep at last. Even whilst "active", I'd be amazed if SLS launched more than two or three times given it's $500m/launch price tag, but they won't stand the product down yet. Even then, the only thing which will properly "replace" SLS (with it's massive 100-130tonne to LEO) will be SpaceX's behemoth ITS.
Biting the hand that feeds IT
