I suppose there's a bit of a distinction to be made between 'film is dead' and 'kodak is dead', and also between 'film is dead' and 'film for the masses is dead'.
The demise of Kodak is more a lesson in kodak compltely cocking up almost everything they've done in the last 20 years, as a company they could be thriving, even in a purely digital world. They killed off kodachrome a few years ago, ektachrome just went this year, all that's left is TMax and BW400CN. They also used to make good Digital Sensors, and their paper and printing was really nice too. But they managed to cock that all up too. Ilford may have gone bust a few years ago but they're back and not doing too bad, and fuji is just mopping up all of kodak's old customers too.
But yes, 'film for the masses' is dead, no doubt about that. But as niche and as collectible it's thriving. I saw an ebay auction end yesterday, for an Exacta 66, the 'ultimate upgrade' to a Pentacon Six, fully mechanical with coupled light-meter, it was always the 6x6 of choice for those who couldn't afford Hasselblad. $500 for the body, $500 for the lightmeter seperately. $600, $700, $800 for three lenses. I see it all the time, film camera prices are actually up a bit on a few years ago. Maybe for collectors? I don't know. There's gotta be a lot of users out there too. The two 6x6, the 6x45, and the two 35mm film bodies i've puchased in the last year are all getting used.
I just shot my first roll of Velvia the other day, on 6x45. All I can say is wow. Being able to look at the images, the colours especially, I'm wondering why I never shot it before. They're about the size of my 7D's LCD screen, but they look so much better. And I scan them to 40MP, and they still look great. All on a camera/lens that cost $300. It may cost $1 per photo for the roll and processing, but I reckon it's making me a better photographer because of it, I only use 'spray and pray' for birds on my 7D, I used to use it even for landscapes but not anymore.
I don't think I'll mount slides into a projector, I doubt i'll ever mix my own chemicals in my own darkroom, or create an 'optical print' with an enlarger, once scanned it's all GIMP. Some things you just can't beat in a digital workflow, like contrast/colour curves and unsharp mask (yes I know unsharp mask was a film invention but it's so much easier on digital). And the best part is, I don't need to backup and worry about hardware failures. Worst case, I have to store the negatives somewhere safe, if I lose the whole lot I just re-scan.