There's a good piece in MIT Tech Review (great magazine by the way) on digital special effects in Hollywood. The point is that digital technology is taking over the complete postproduction process - editing, colour correcting etc - not just "special effects". This of course leads to the question as to whether any of the process should remain analogue. Certainly it is easier to film in digital, then edit and do your postproduction in digital at least. (The per cinema costs to project in digital for now are too high, but it is actually cheaper to do everything else in digital). However, the resolution isn't yet high enough. The 1920x1080 of the best film cameras isn't up to scratch compared to 35mm film (which is equivalent to a resolution of about 3500x2000). Until it is we are likely to still be using the hybrid digital/analogue techniques described in the article.