When you think about the quantity of 35mm equipment out there in 1996, APS never really had a chance of supplanting 35mm. The only way manufacturers could do that would be to discontinue 35mm cameras and withdraw 35mm film, and consequently shoot themselves firmly in the pre-digital foot. APS offers no technical or optical advantages over 35mm unless you're an incompetent who can't load a camera properly. APS = massive fail. But the marketing guys loved it. :-D
The tiny Elph's were pretty darned cool. And they look just like digital P&S cameras. I thought of picking up one just so I could shoot film incognito.