Kodak leaving the B+W paper market, my guess is film will not be too far behind. But it will be to their demise.
http://biz.yahoo.com/ap/050616/kodak_paper.html?.v=2
Read the article and look at the stock charts. If the stock is any indication then Kodak as a company will suffer as well. Can you imagine no Kodak??!! They have not been able to get it right for decades, the company is just too big and too slow and too bureaucratic to change and keep up with changes in technology, which is what digital is, technology. Most of Kodak's so called advances in digital have been through aquisitions and not internal.
Instead of working to improve the quality of analog materials and proper marketing, Kodak has fallen way behind. My guess is digital is here to stay, but not in its present form. Their has to be a standard for which to record, store, and retrieve images. Technologies will change and improve but Kodak will not be able to keep up. Instead of being a leader, they have been like the fat cat who ate too many pizzas before the race. They puked and died.
With Kodak gone, analog will flourish, but so will digital, my guess is there will be a balancing between the two, each with their own applications and markets.