I find it remarkable how positive the tone is of this article compared to how a decade or two ago US mainstream media was wailing about WalMart killing mom&pop shops and corner grocery stores. I wonder why that is? If anything once this chain expands it'll drive all the remaining small grocers out of business, since it's considerably cheaper than even walmart.
Post-Walmart/2008 America is living paycheck to paycheck. It's harder to vilify those who undercut competitors if that means people get to eat this week.
The way Aldi works I wouln't expect it to ever completely take over the market. Its selection is not intended to be big enough to do so. Generally you buy 80% or more of your stuff at Aldi, then go to the grocery store right next door and finish the rest of your list which Aldi doesn't carry. Also, what does a "small grocer" even look like these days? The only grocery stores I see that don't seem to be part of larger chains is ethnic food stores, and Aldi is definitely not in that market.