I think seeking Ch. 11 protection sooner rather than later is the right thing to do because we're again faced with the potential of a serious global banking crisis - which could make it much, much harder for them to get "debtor-in-possession" financing.
Given that all of their operations remain in cyclical or secular decline and the risk-aversion of lenders, yes, I think Ch. 7 liquidation is a definite possibility. In fact, Kodak's debtholders may prefer that the company go that route immediately because Kodak's assets are not likely to appreciate as time passes.
And even if they do obtain financing for continued operations, I think that that financing would only come about as a result of a restructuring plan that breaks up the company.
I'm not sure where all of the above leaves the film division but I suspect that if Kodak film continues to be manufactured, it will have to be made outside of the USA. The current USA-based production infrastructure is now too large and there is the ongoing matter of toxic torts...