These transitions, from one type of technology to another, are fascinating. As humans, we just don't use the technology dispassionately, it actually becomes embedded in our culture. Activities such as how a picture is taken or developed, are not just about the practical means of capturing an image, they have cultural and individual significance. Developing film oneself, and the training necessary to accomplish it, causes a great deal of personal satisfaction I would assume, and relinquishing that experience becomes difficult.
To further add to the awkwardness of the transition, the average consumer can essentially perform with new technology what it took a significant amount of training to accomplish well on film.
And of course think about all of the businesses, both small and large, that had a huge vested interest in film. As with countless transitions that have occurred before, they will have to adapt or die, or possibly identify a small niche where they can continue to exist.
In the end, technology moves forward, which is a good thing. Digital camera technology has given the power to a vast number of consumers to take more and better photographs. It has also clearly made life more efficient for professional photographers, and driven down costs.
Like other technological transitions, rationalizations will be made by those who resist the transition, but it will continue anyhow. Assuredly, a small film industry will persist for some time, just as a small vinyl record industry persists. And as long as people are enjoying what they do, there's nothing wrong with that.