I definitely do not think that film is dead. Nor do I think that digital will demean the art aspect of film. Many of the same arguments could have been applied with the advent of all of the "cheap snapshot" film technologies that have appeared, and sometimes disappeared (remember Disk cameras?) over the years.
When documenting material failures, I can still do far more in film than digital. Somebody wants to see a quick picture of a failure? Great. Pull out the digital picture, snap a few shots, and send them off by e-mail. I want documentation or help in an analysis? Film all the way.
Yes, photography will become more available, but having a digital camera and photoshop don't help with composition, exposure, lighting, mood, or emotional impact.
Digital will, in time, come to compliment film and to expand our art, but it won't displace it any time soon.