http://story.news.yahoo.com/news?tmpl=story&cid=581&ncid=581&e=1&u=/nm/20040113/tc_nm/tech_eastmankodak_dc

They haven't been an SLR/rangefinder contender for quite some time, so if they have dropped film cams, it's because they couldn't compete with the big cam makers, in my opinion.

While one can argue on technical product comparisons, the reason discussed in the financial circles is that Kodak is a company with a large stake in a dwindling film business.
This makes shareholders unhappy. Shareholders could care less whether Kodak makes money off film, film cameras or digital cameras. Since the digital camera business is rising, shareholders are happy by Kodak's announcements. Now, the real question is how Kodak will make money in their digital ventures.