Michael --

I don't know if you saw the announcement by a new company, Foveon, that claims that they have developed an imaging chip that (1) has much better color than previous electronic "photography" systems and (2) collects more data per square inch than film.  Of course, Foveon's technology may or may not deal with issues such as video's relative inability to create whites as white or blacks as black as film.  But in any case, you can create quite beautiful images with video if you allow for its quirks.  I mean, look at early silent films, shot on film stock that probably has nowhere near the technical capabilities of today's best products.
 
Anyway, the real reason to back video rather than film is that film is dependent on a deeply entrenched distribution channel that holds more or less total power over what gets seen by the masses.  Who cares if your movie is beautifully photographed if nobody will distribute it?  I say, we need Napster for videos. 

Cheers,
Friedrich