In terms of resolution and noise, digital is way better. Color balancing mixed light sources is also much easier to do with raw digital files. And the latest cameras, like the Nikon D700, are amazing at high ISOs.
The reason to still shoot 35mm film is for the way B&W is rendered. You can get pleasing, good results from converting raw digital files (which are RGB) into greyscale files, but even the best technique still doesn't look "film-like". Although a few people, who print contrasty and dark, can fool you.... You can also get surprisingly pretty high resolution with slow film and Leica-quality lenses, and good technique (i.e. tripod).
Color 35mm film is used because you simply don't care to work with digital -- if we're talking image quality you might be able to do something competitive yet different with slow speed film and good drum scanner, but even a >$1000 consumer DSLR raw file will be at least competitive or better than the best scanned 35mm color film.
Commercially, a pro DSLR can be used where a pro used to use (need?) a medium-format camera.