I think it will be awhile before processing completely disappears being that having professional quality prints is still something people want even if all they have is a digital camera.
People still can't edit photos like a pro too, meaning if you want your pics looking their best you'd still have to let a pro handle them, digital or not.
And what parent wants to let their child take an expensive digital camera on a class trip when it would make more sense to hand them a disposable 35mm?
What about weddings where it has become kind of customary to put a disposable camera on each table at the reception and let your guests snap pics for you?
35mm isn't going anywhere till disposable digital replaces the disposable 35mm. (is there even such thing as disposable digital cameras yet?)
btw...I still own a 110 that is near impossible to buy film for these days, and that is a sad thing.
and mouser...where is the quick reply in this section of the forum?