Just delivered a crystal clear 16X20 to one of my clients to give as a gift to her parents. It was from her engagement session. Another client who saw it in our studio before delivery asked about ordering a 20X30 (I'm talking inches here, in case our European friends are reading). I'm shooting 6.5 megapixel Nikon SLR cameras. So, yes, digital is pretty darn good. I could never have prodced these prints at the same quality level from 35mm film, and the APS sensor size easily rivals medium format film in some applications. Much of the quality depends on the lens used, sensor quality, processing software, and you skills with lighting and exposure. There's a lot that goes into a good print, and you have to be familiar with each step of the process.
Truth be known, film does have it's advantages. Film has a somewhat random grain structure, and that's why you get great results with some films. Ever see those unretouched portraits with creamy skin tones from a film capture? Human skin isn't perfect, and there is just enough random grain placement (and minute differences in grain size) in film to make some of the tiny imperfections in skin go away when the print is made. Like reducing the appearance of skin pores. Make sense? Some films are better than others at this.
Digital can be too perfect. It will capture every detail and flaw if you are using decent equipment. This is great for product and nature photography, but it's not always good for people photography. But the good news is that we can mimic the look of film using certain software applications in Photoshop.
So, is digital as good as film? Yes, in some situations. I've only talked about print quality here - thre are many other variables to discuss, such as flexibility when shooting on the fly. In others situations, digital just offers different results, no better, no worse.