I was in The Real Camera Company here in Manchester a little while ago (the only solely analogue photo shop in town) and it was full of students buying Pentax K1000 and similar study entry-level film SLRs. I guess there's still money to be made at that end of the market.
On the downside, the Manchester Calumet seems to have stopped stocking fixer as standard (they eventually found me some Hypam in a dusty corner of the warehouse), and they've shrunk down film's place in the showroom to a single shelf amongst a vista of shiny digi doodads. The nice young lady who eventually found me the fixer told me that she still uses film though...