I agree that the point and shoot 35mm will die in the next 5 years, however the 35mm slr cameras will not.
I still use my 35mm SLR because I have so much invested in it. I also just brought a new 35mm body last year, since they come down so much in price from a few years earlier.
Also too many people have 35mm SLR film cameras that are not just going to go away. Yes, you can use most of your old lenses on the new digital slr cameras, however, you gain about factor of 1.5 to 1.6 on the focal lenghts. Say goodbye to your wide-angle lenses.
Plus how long does the CCD last on these cameras? And if one or two pixels dies on it, you will have to replace the whole CCD chip on it which is very expensive.
I won't go over to digital slr until the CCD on the digital SLR become the same size as the standard 35mm film. Therefore, I could use all of my old 35mm lenses on the digital slr cameras without the current side-effect. However, I do use a point and shoot digital camera. I no longer use my point and shoot 35mm cameras.

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