I'm certainly converted to the merits of digital for many purposes, but I don't think it replaces film as yet.
Within it's resolution limits, and based on an output resolution of 300dpi (best most "consumer" level output devices can do, standard for publication), the digital output appears better in most cases.
However, it is important to realise that with most digicams, we are only now reaching this output standrad with reasonable print sizes, whereas in the case of, say, a carefully exposed K25 slide, the latent resolution is much much higher ... most output forms are actually unable to reproduce the resolution and sharpness inherent in the slide.
Furthermore there is a fundamental difference between the digital and analogue process when it comes to enlargement. After reaching the available resolution of a digital image, further enlargement is only possible by "inventing" data. A slide, of course, can be scaled up endlessly with no invented data (though there are other limiting factors). Which is better at this level, is I think a matter of taste, as the processing method begins to have an effect on the "look" of the final image.
For instance, comparing a Reala portrait (scanned at 4000dpi) to a D30 portrait, I prefer the D30 output up to an interpolated 300dpi A4 size image - beyond A4 size, the film output is preferable, as the edges start to become too soft on the D30 file and out of focus areas start to develop a sort of halo effect.
At some point, though digital will surpass the latent resolution on any film. I think many experts beleive this would happen at around 12mp - assuming of course that the sensor is noise free.
Colin K. Work, Pixstel