What I can't understand is that grown up people don't get that:
a) Storage cards are reuseable some 100,000 times
b) minilabs print from film and storage cards
c) you don't need a computer to get your card to a lab
d) you don't need high powered computers to reduce redeye and crop
Have a look at free software like picasa from google, it does a lot of things for every casual shooter which he couldn't have done with film and it runs just fine on my 733MHz 512MB RAM PC from the stoneage. I have Pixmantecs RawShooter Premium running on a more than tree year old Dell Laptop.
Show me something the typical P&S user can do with film what he can't do with digital.
And here I have never seen so much film SLRs as digitial SLRs now, I have four of the Contax SLRs he mentions, a friend has EOS 3 and 1v another Nikon FE and F80 the next has two F90x and so on, we all shoot digital SLRs 99% of the time. I'm the only one who's left buying film! Five years ago each of us burnt two or three rolls a week, now it's just me shooting one.