Another part of it is this: neanderthal fossils have only been found in valleys or flat areas, whereas homo sapiens has also been found on hills and mountains. We had a larger "niche" than the neanderthal, giving us an evolutionary bonus.
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Thats an interesting point. Just seems like Homo Sapiens would be more adapt to different terrain and have larger hunting grounds. Maybe what ever killed the dinosaurs caused other herds to move into areas unfamiliar to Neanderthals.