If we manage to create life capable of doing 1) and 2) but also capable of self-improvement and self-design of their intelligence I think what we've just done is created the next step in the universe understanding itself, which is a good thing. Bacteria didn't panic when multi-cellular life evolved. Bacteria is still around, it's just a thriving part of a more complex system.

At some point biological humans will either merge with their technology or stop being the forefront of intelligence in our little corner of the universe. Either of those is perfectly acceptable as far as I am concerned and hopefully one or both of them come to pass. The only way they don't IMO is if we manage to exterminate ourselves first.