In my opinion, digital methods of capturing, editing and creating work will continue to improve both in quality and scope. For example, earlier versions of Photoshop had fewer effects and filters than it does today, and it was a lot slower and less effective. Digital methods will also become easier to use, both because the user interfaces will be further developed, and also as people become more used to the technology, ie, digital natives as opposed to digital visitors. Computing power will continue to improve, and with this increased power and speed will come more capabilities at lower prices.
There will always be a demand for analogue methods of capture - people will always want to pick up a pencil and sketch without the need for specialist equipment, they'll always want to write poetry to capture their feelings and emotions, and sometimes it is quicker to work in analogue than it is digitally; no specialised equipment is required to make a drawing, just a pencil, pad and your own senses. Digital production also has the problem that you are constrained within a program that is written by someone else - with analogue the only limit is your own creative abilities.
What I believe is going to happen more is a combination of the two forms. For example, drawing tablets incorporate the feel of a traditional pencil or airbrush but the work is in a digital form. Digital cameras also use an analogue method of capture (lenses and apertures forming an image on a light-sensitive surface), but the information captured is stored electronically.
