I do theoretical CS. A few years ago, I did some research and wrote a paper on my results, posting it on arXiv. I thought about getting it published, but between applying to programs after graduation and starting my new job, it fell by the wayside. Recently, I found a new paper is coming out that cites mine, disproves a conjecture, and extends a result.
Does the existence of the new paper hurt or help my chances of eventually getting the paper published? More likely, I would aim to present it at a conference because I've been told that that's much easier in theoretical computer science, especially for unknown authors or niche topics. Does the new paper hurt or help me chances of presenting the paper at a conference? It would feel weird presenting research that's no longer the state-of-the-art. Should the paper be modified to acknowledge the existence of the citing paper?