While it's technically true that that raw digital photos don't have the resolution of film, unless you are in the habit of examining your printed pictures under a microscrope, I doubt seriously that you will notice the difference. (I say raw digital photos because I believe that the vast majority, if not all, photos which are published in books, magazines and newspapers, whether their origina is film or digital, are digitized before publication.)
Rick, where does the 88 megapixel number come from? All of the published info I have seen says that in the range of 6 - 8 megapixels, a digital foto is, for all practical purposes, indistinguishable from film. But I'll admit I haven't researched the issue.
I have made 8x10 prints from my 1.67 megapixel digital camera which I have hanging on my walls, and which constantly get oohs and ahhs from visitors. The real magic is in the composition, not some technical arcana regarding absolute resolution. If the photographer is unable of "seeing" a good picture, no amount of resolution or technical gimmickry is going to produce a good shot.
As for limited storage capacity for digital photos, hmmmm, let's see....my 1.67 megapixel camera has an 80 MB card which holds about 160 pictures, @ max resolution. My 3.3 megapixel camera has the IBM 340 MB Microdrive which holds....lemme turn the camera on...245 pictures @ max resolution. That's not enough for a 2-tank dive? Maybe I should save up for the 1 GB drive, which should give me about 800 shots.
An additional advantage to digital is that you can load the pictures into your computer, and through the magic of Photoshop or any of a zillion other image manipulation programs, make the picture look any way you want....cropping, colorizing, browntoning, on and on.
If your goal is to take pictures for your own enjoyment and to share with friends / relatives over the internet or via CD or even to print an hand out, digital is the way to go. If your goal is to get published, for example in Skin Diver magazine's excellent annual photographic issue, digital is the way to go (magazine color rendition and resolution is not equal to photographic print quality).
Having said all that, there is a time and place to use film, and situations where I still prefer my 35mm camera. Underwater is not one of them.