... Camera manufactures responded - first there was "shutter priority", then aperture priority, then full auto, auto advance/rewind, auto focus, auto flash... auto, auto, auto. Things got somewhat better but you still needed to know how to use all the "auto" stuff, ironically. But that didn't solve the other issue with film - expense. You had to buy film then process it - and let's face it, to many consumers it wasn't cheap. Then the hassle of going to a lab to get it processed, having to wait, spending good money, full of anticipation for that one and only "Kodak moment" didn't "come out".
Digital changed all that. Set the camera to "P" - shoot. That's it. Small cameras you can take anywhere, many with image stabilization, and guess what? The output ain't bad. Finally, camera manufacturers were able to satisfy consumer demand for what they wanted in a camera - and then some. Mom, your 85 year old granny, your 4 year old can now all take pics that "come out". No more trips to the lab, no more waiting, and if you do what most do load them on to your PC or a website, it doesn't cost you a dime. Hell - they'll even take video clips...
Of course digital took over! 35mm is dead as the medium for average consumers who just want pics of their kids and vacation to share, which is the majority of the market. Film will never make a come-back in this regard It is already relegated to "hobbiest" status mostly ...