it really just comes down to business, how do you think your film would be best served and what will gain the most attention? Socially film has a much higher respect level then then video, and probably always will. It also has a long history, but this doesn’t mean a shot on video movie cannot be successful, there has been many examples that have proved this. But the quickest easiest way to get noticed or gain distribution is by shooting on film, of course accompanied with a great story first, good acting, directing and all of the above, filmmakers today rush too much and making a movie today has become more cool then craft.
I know this makes me sound as if a film advocate but I am not, I think film looks great if you have the money, but digital has a huge advantage over cost. I run a film festival The Independent Digital Film Festival, (http://www.withoutabox.com/login/4929) and all we accept is digital films to try and bring more awareness and validity to the medium and I’ll tell you there are some filmmakers out there that shoot on video and do a fantastic job of rivaling a high budget shot on film project.
-jason