When I was in college I worked on a lot of student films with writers and directors from a very expensive film school in New York City. Some students would spend an exorbitant amount of money to make their films by flying their entire cast and crew to Asia or Arizona to shoot. They did all of their work on film which by the foot would run them into thousands of dollars.
Digital film making has been a blessing and a curse as some films made are just plain bad. (A recent conversation with someone who helps organize The Hamptons Film Festival said that movies submitted on film were more likely to be seen while the ones shot on digital were more likely to be tossed in the reject pile.) The upside, of course, is that digital film has democracized film making allowing film makers from all cultural and economic backgrounds showcase their unique voice.
The film making process has become even more accessible with mobile phones. Portugal is having a cell phone film festival and will show the winners on a large screen in Libson.