The young folk (I'm only 33, but I definitely am starting to feel old) want to shoot film, but want to do so in the easiest, most approachable way - enter the point and shoot.
I grew up with SLRs and rangefinders, but my friend's parents all had different point and shoots, so they're all nostalgic about them. I always hated how long they took to focus and then fire when you hit the shutter button (something those late model Canons improved on), hated how slow the lenses were (if you used the zoom, you better have asa 800 film in there), and how mushy the images were. I'm glad people enjoy them, but not my things, and my desire for a high quality small camera is not enough to want to spend nice lens money on one.