The only advantages of the 757-200M over the 757-200 is that it can use shorter runways, and you can get one every two weeks instead of every three weeks. By every other metric it's an inferior product.
Whether or not something is a "replacement" for the 752 depends on your needs. In terms of raw profitability, the 757-300 with PW2037s is unmatched. Its primary disadvantage is runway length; when compared to the similarly profitable (but lower capacity) 737-400, 737 MAX 8, C919, and A320 series, it needs much longer runways. This can limit its usefulness somewhat, but that's why mixed fleets exist.
There is another thing to consider, and that is maintenance costs. Maintenance fees increase quadratically, not linearly, with the base cost being 0.3% of the retail price. That means expensive planes age "worse" than less expensive ones. a 20-year-old 757-300 is less profitable than a 20-year-old 717, because its maintenance costs stack up much more harshly.
Now... let's not delude ourselves into thinking that these extra maintenance fees will break the bank. A sufficiently profitable IFE will pay the entirety of an aircraft's maintenance bills well into its 30s, but for airlines with razor-thin margins it is something worth considering; higher sticker price means higher maintenance fees down the line. Much higher.