Well the only important advantage of the F-35 against Rafale is Its great stealth capabilities. Rafale has some stealth capabilities too but the F-35 is on another level. That's all really. Rafale is a next gen aircraft just like the F-35 is and in some cases it's superior to the F-35 (speed, acceleration).

The most important part though is cost. F-35 costs much more to manufacture and much more to fly. Rafale is just a better deal for a multirole aircraft. Sure, stealth capabilities are important but most countries wont make great use of it. If i were anyone except for USA, Russia and China i would spend the same money to get some more dozens of Rafales. Rafale has better VFM. I don't think countries who bought Rafales are planning to buy the F-35 soon, sooo yes, indirectly, it's replacing the F-35.