The "old analog guys" aren't going anywhere. In fact, many of the "younger hipper guys" still use analog tape. The best studios out there primarily run hybrid setups. Track to 2" tape, dump to DAW, mix through console. Studer even released 20 or 30 new 2" tape machines earlier this year. No matter how much better digital gets, analog tape will always have its place in a PRO environment. In fact, as less and less people use analog, those studios won't have to junk their machines, they can probably raise their rates and stay more booked due to the fact that they still have their machines. Do you really think that concert pianists would give up their $100,000 dollar pianos because Roland puts out a killer sample? Will a Stradivarius become worthless due to a good midi violin coming out? I highly doubt it.
In general, studio's that run all digital do so because they either can't afford (money and space) a nice tape machine and a large enough console to make it worthwhile. There is no doubt that digital gets better and better every day. There is no doubt that digital allows us to achieve a better quality within a constrained budget than analog may allow in that same budget. There is also no doubt that digital is much more powerful when it comes to editing. In the end though, the true engineers and musicians are after quality. Analog tape is an excellent tool to provide that missing piece of magic that seems to be missing from digital equipment. Why do you think that so many of the big digital consoles still have a ton of analog circuitry?
For me, a good 2" machine is unmatchable. In my opinion it takes some serious converters to achieve similar quality. Not that the $100 a channel converters aren't capable of allowing an engineer to make a killer album, but all the RME's and Motu's an Maudio's still don't really hold a candle to the nice Prism, Mytek, Lavry, Apogee and Weiss converters. So in the end, a digital studio isn't really less expensive if you actually compare apples to apples. For those on constrained or limited budgets, I whole heartedly reccomend digital. Its the best way to get a powerful and flexible setup at a decent price. But, for those that can afford it and are serious about their stuff (not implying that those that use digital aren't serious), analog tape is nearly a necessity.