This is an interesting excerpt from a story I read to day about the current state of digital photography:

First, there's the astonishing collapse of the film camera market. By some tallies, 92 percent of all cameras sold are now digital. Big-name camera companies are either exiting the film business (Kodak, Nikon) or exiting the camera business altogether (Konica Minolta). Film photography is rapidly becoming a special-interest niche.

Next, there's the end of the megapixel race. "In compact cameras, I think that the megapixel race is pretty much over," says Chuck Westfall, director of media for Canon's camera marketing group. "Seven- and eight-megapixel cameras seem to be more than adequate. We can easily go up to a 13-by-19 print and see very, very clear detail."