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Firstly, social ads aren't just for pages - they're for anything on Facebook, including groups and applications. Social ads all work on either a CPC or CPM rate depending on your choice and where you place them (newsfeed ads are currently only CPM), where'as most of the big application ad networks work off a CPI - Cost Per Install. I've ran ad campaigns on Facebook for applications and utilise a mix of these - CPI ads to get an initial userbase, then social ads as a cheaper option which makes use of the friend connections to spread it even further.
Secondly, in many campaigns I've been involved in we've made use of a focal fan page which we've used to seed a variety of relevant applications. We've also built bespoke applications purely for the functionality then can bring to a page.
So, I wouldn't say that they're in direct competition - just something different. If you want to build some form of viral game, or an in-depth, multi-page community on Facebook, you need to use applications, and sometimes pages are more suitable - or they can combine. It's not an either or.