Hollywood DP finally said it: "Film is over"
alexandrosmaragos.com
alexandrosmaragos.com
It's not that we're not getting there, but there's still a mile or two to tread.
The compositing software you can get today does an amazing job of adding and subtracting elements. Maybe you mean film is cheaper because it doesn't mess with your existing work-flow and you don't have to re-tune your tools.
With RED, even though results are very good (they are, however, short of amazing: it's terribly noisy, but then again so is underexposed film), the dynamic range is lower (and the dynamic density is uniform, which isn't that good), so keying becomes an issue, and so do CCD artefacts - even more so when renting 422 equipment. The complexity/risk isn't necessarily prohibitive, but definitely less lucrative. That's why I say 'cheaper', not 'better'.
On the compositing side, software has been great for quite some time. I'm aware of only a handful of truly novel keying algorithms published in the past 6 years, and none that can deal with digital artefacts very well (if you know of any, please tell me. Better yet, tell someone who works for The Foundry or Autodesk. Much appreciated. x), that's why so many commercials are still shot on 35mm instead of digital.
IMAX, long the king of film, might find itself knocked out by a digital alternative. If 28K isn't good enough, then 50K? 100K? Film isn't getting any better, there's too many limitations, but digital film technology is still advancing.
Someone's probably going to invent a "de-artifacting" algorithm that works well enough that in practice nobody can see the difference. There's a lot of Ph.D. students out there in need of a thesis topic, after all.
I do hope that it remains feasible to shoot on film for those that want to. It's a fun medium to work in, and there's a romanticism about shooting on film that I think is lost in using digital cameras.
About ten years ago, a musician acquaintance and I were discussing the decline of vinyl. His argument in favour of this archaic technology was passionate. He dispensed with technical arguments, which are generally just not very good, but opened my eyes to a very different argument that I respected: that there is an unbroken physical lineage between the artist and the listener, from the session microphone to the tape to the masters to the copies to the stylus of your turntable.
I have a similar affection for film, even if all editing is done through DIs nowadays, and even though I've been rooting for digital film-making ever since "The Last Broadcast".