I'd say it certainly hasn't hurt films survival. As a seventeen year old I just got into film photography this past July; and it was Impossible Project that got me interested. Someone asked me to borrow my old Polaroid 600 camera that I used when I was younger for their wedding. I told them Polariod no longer made film but that I'd heard that another company had started making it. To check out this new film I looked IP up and bought a pack of B&W. The price hurt, plus the photos weren't the greatest ever, but overal it piqued my interest in analogue photography.
I've tried to take up digital photography a few times since photography is really the only outlet I have in the visual arts since pen, pencil, and brush seem to hate me. But I was never able to get myself engaged with it. I'd always shoot for a bit, edit some, but then get bored and quit. Luckily for me however I'm impatient and hate waiting for shipping, and to cheap to order anything express, and I looked up were I could get IP film locally in Portland. That led me to Blue Moon Camera & Machine, where I quickly discovered that you could take amazing photos with film that didn't look so sloppy. (Don't get me wrong, I don't hate the Lomo look, I own a Holga, I just don't get using it for everything.) This led me to that week purchase a Nikon F2 Photomic and a 55mm f/2.8 Micro-Nikkor(I'm aware that it's an odd choice for your only lense) and run a roll of Velvia 50 thru it. I got those slides back and was in love, I didn't have to screw with anything in Photoshop, they looked great as is. I was ecstatic, I HATE digital photo editing, is there anything more dull out there?
Longer story slightly shorter I'm now shooting almost nothing but B&W(I'm discovering I dislike color), developing it myself, and starting to teach myself to wet-print. I'm going down to take my second stab at printing and my first at toning this Monday and I'm looking forward to it. I know I suck at printing now, but I already was able to make one or two prints that wouldn't make me wretch to show to someone, which is encouraging. I'm just getting started, and I don't intend to ever stop using nothing but film, I'll make my own glass plates if it comes to it. And I owe it all to the movement that Lomo has spawned. I may not do much in the way of "lomography", but it's what got me here today.