I'd have to go with digital, as I -love- my Canon Rebel XS, mainly because the features are so much more handy. You still get almost exactly the same quality as the film equivalent, but you can review photos and store tons more without having to worry about buying film.
Film does have it's positives though; wish I had a film camera to mess around with now and then, I've heard a lot of photographers say that you just can't get certain styles with a digital that you can with film.
It's a dangerous business, Frodo, going out of your door," he used to say. "You step into the Road, and if you don't keep your feet, there is no telling where you might be swept off to."