For the film archivists lurking amidst the DAMsta community I recommend this article in Senses in Cinema by Jan-Christopher Horak, the Director of the UCLA Film and Television Archive. It is a great summation of the challenges for film archives in a digital world.
Here's the link : http://www.sensesofcinema.com/2010/book-reviews/film-curatorship-archives-museums-and-the-digital-marketplace-edited-by-paolo-cherchi-usai-david-francis-alexander-horwath-and-michael-loebenstein-2/
For what its worth, I don't think there is enough hours in the day and enough money flowing into the archives to take anything but a curatorial approach. As I've stated in previous posts...everything isn't going to fit into the digital "lifeboat." It's time to get busy encoding. Embrace the digital world or get busy filling dumpsters. Further, as a product of the commercial archive world I think making the films available as "digital content" to finance archival operations is a worthy exercise that should be explored. Regardless, this article encapsulates the financial, and philosophical issues frustratingly well.