No, its not obsolete.
For a general purpose military arm, the pistol caliber sub gun lacks compared to a true "assault rifle" (light caliber selective fire rifle). But that doesn't really matter unless you are in or supplying a military.
For a general purpose SHTF rifle, a rifle caliber, even a light one like .223, can reach further and do more. For the weight and bulk in that situation, the rifle caliber has it. Even then, the pistol caliber carbine (PCC) has better ammo availability. Find .223 or 7.62x39. Its available but, except for places that sell bulk or surplus, 9mm, .40 and .45 will be available in bigger quantities.
Accuracy: Absolute accuracy (from a rest with a scope) the true rifle will win. Functional accuracy? You will be hard put to tell them apart. At 50 yards a PCC fired offhand will group with a rifle fired the same way in the same timeframe. Shooting offhand at 100 yards, the difference won't be noticable unless you are shooting at small game. And you can shoot either accurately enough as fast as you can pull the trigger.
Defense (civilian): The rifle has more power, and more penetration against soft body armor. Neither penetrates hard body armor. The PCC will have less flash, less "blast", and hurt your eardrums (and those of innocents you are protecting) less. The PCC will punch through the interior corner the goblin is using for cover while light .223 rounds will break up in the wall (exiting as fragments). Better constructed 5.56 mm FMJ and 7.62x39 will punch through as well, but share the PCCs problem of penetrating EXTERIOR walls also. The goblin you hit isn't walking away from either rifle or PCC.