There is definitely something to be said for tactile media. That is, photographs, CDs, books. Things you can hold. Whilst you can store the same information on a secure server somewhere on the internet, or back up on discs, the same "feel" of it isn't there. There is no soul to a packet that has been routed halfway round the world to get to your TV.
However, the benefit of digital cameras is that you take pictures of things you wouldn't with a film camera. Because you don't have to pay for developing.
I have a digital camcorder. The only problem I have with it is, I feel that I must do justice to the technology by firewiring anything I film into my PC, editing, adding transitions etc, then making a DVD. But years ago it was sufficient to just transfer from the camcorder to VHS and store it, raw.
I read an interesting letter in a hifi magazine recently. A reader was observing that most record producers now get too tied up in making the most of the technology instead of just making music. The dynamic range of Phil Spector's music was only a few dB, yet with Super Audio CD now we have 120dB or so of range. But the old "wall of sound" recordings can bring about emotions and feelings, make you feel happy despite its now comparatively poor sound quality. Reminds me of that episode of "Third Rock from the Sun" where the head alien says "Hmmm, CDs. When will humans discover the superior sound of vinyl?"