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lordalch4 karma

For fixtures that use parabolic reflectors (ie, spread the light out with soft edges), LED is very competitive for cost, especially if you use the lights a lot and have to replace lamps. Most companies have already started moving toward LED pars.

For lights that project hard-edged beams, with ellipsoidal reflectors and lenses, the internal optics require that the light be generated from a point source. A panel of LEDs isn't compatible with that paradigm.

One company, ETC, who makes the most-used ellipsoidal light in the world, designed a work-around that uses a precision fly-eye lens to focus each LED cell individually. This works, but the precision manufacturing required makes the fixtures cost a lot more than their conventional equivalents.

Edit: there's a How Its Made segment on LED Source Fours. A very interesting use of 7 minutes.

TLDR: some kinds of lights are hard to make LED versions of.