While there are certainly benefits to film, there are also many excellent reasons for which people are switching to digital. The sensors in even the low-end digital SLRs have rather good low-light performance. They are less grainy at 1600 ISO than the sensors in point and shoot cameras are at 400 or even 200 ISO. The dSLR systems also include features like depth of field preview, mirror lock-up, and bracketing for both exposure and white balance. Also very useful are dedicated controls for things like white balance, ISO, and exposure compensation. Sure, you can set all those things through menus in most good point and shoot cameras. It is a lot more pleasant to be able to do so on the fly, while still looking through the viewfinder.
As a fan of wide angle lenses, I do find the 1.6X multiplication from small sensors annoying. That being said, dSLRs these days do come with decent kit lenses that include an appropriately altered range. And, of course, there is always the enormous value of being able to take unlimited photos without marginal cost and get immediate feedback on the results of what you are doing. Being able to consult luminosity and RGB histograms half a second after taking the photo certainly beats having to wait for processing and printing.
In short, there are many virtues to digital photography: especially to those of us who are uncertain about there we will be living in the next few years. Just like one’s personal library, shipping around binders of archive-quality negatives is an expense and a pain. Ones and zeros can be zipped around the world at a much lower price, and with less risk to the originals.