problem is though digital IS the second coming in many ways. Cheap and it is so much easier to see photo's appear on your monitor and deciding which to keep etc. Then emailing, posting on fb/twitter whatever...
Kodak's problem is not just digital, but a failure to make decent cameras that make a decent profit. If they had got into a decent camera system and/or dslr system they'd have kept up their profits. The film side would chug along on it's own. However, Minolta struggled with this, so maybe it wouldn't have worked out great...