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Well, I voted "Digital" above, but it's kind of a forked question. It depends what you want to do with it.
For still photos, I would recommend digital to happy-snappers, cheapskates, and techno-freaks. I would recommend analogue (photo-sensitive film) to those that NEED that professional edge, and those that want to inflate the size of the output print bigger than A2 size.
The basic rule of thumb for still photography is get digital unless you have a specific need to use Analogue.
Video is a different matter though. Digital is most definitely the wave of the future. However, digital video has a kind of "clean" appearance that doesn't suit all productions. A lot of film and television companies (most in fact) still shoot on photo-sensitive film as the results are simply more pleasing to the eye. Having said that, they are often Digitally Enhanced / ReMastered afterwards, so you are actually viewing a digital film. The difference is just the method of capture.
The best advice I can give is test, test, and test again. Try digital first, and if you can't get the style / quality you are after with the best digital kit, try analogue. But beware, you will run out of cash faster than you can say "Whoops!"
If it helps any, I am 100% digital for audio, video, and stills, and I have never had any complaints
(ooo-er)
Hope that helps 