Howdy Superstring,
There are several things in your post I'd like to address:
If a species evolves to the next level...
Two things here which are common misconceptions of evolution. First, an entire species won't necessarily change, since most species consist of many different breeding populations. Evolutionary changes in one breeding population won't necessarily show up in another. This is why we usually find new species
splitting off from another species rather than simply replacing them. Two use an example in the human line, the ancestor of both modern humans and chimpanzees split into (at least) two groups, one becoming humans and one becoming chimpanzees.
Second, when you say "next level", it sounds alot like another common misconception of evolution, that it happens in linear stages (generally) going from "less evolved" to "more evolved". The fact is that every species alive today, from redwood trees to bacteria to cats to humans is just as "evolved" as every other. I'm not sure if you meant it that way, however.
...by utilizing a random mutation...
Rarely does speciation happen due to a single mutation (though polyploidy is a good example of this). It usually occurs due to population groups becoming more and more reproductively isolated over time due to the accumulation of many such mutations.
...which just so happens to be an advantage and subplants inferior members of it's kinds (usually by killing them and/or eating all the available food-- thus causing them to die),
I don't think that the complete replacement scenario you describe above is very common at all; though we modern humans certainly did seem to replace our cousins the neanderthals.
Also it should be noted that very few genetic changes are universally good or bad. Selection is due to particular environmental pressures, and as pressures change, what was once good may now be bad and vice versa.
how are we going to evolve to the next level.
Somewhere along the way, we (thankfully) evolved morality. But, the one victim of our morality is evolution. We no longer exterminate the weak (thankfully). Since this is the case, what is the next stage?
Licensed breading?
Genetic engineering?
Discuss!
Well, I don't think we're so evolutionarily bereft as you're thinking. Remember that evolution is primarily about reproduction and particularly differential reproductive success. If a certain segment of humanity regularly outbreeds another segment, then it will pass much more of it's genes into the next generation. In contrast, if certain segments reproduce much less, less of the successive generations will contain their genes. That's evolution right there, and it happens all the time in humans.
You don't need to exterminate anyone to stop their genes from being passed on, just take their mates.