I bought my first digital camera around 2005, and I tend to be a late adopter (from a practical standpoint - although not necessarily from a theoretical standpoint). Even if I have decided I like something new better, I wait until supply/demand has balanced out enough that I can justify spending money on it. Before that, however (between 2000 and 2005), I started pretty extensive use of an electronic darkroom - primarily for photo restoration. Shortly after I bought my first digital camera, I bought my computer-illiterate mother the same one. My father was sure she'd never learn to use it . . . he was wrong. So by that time the decline had happened. My recollection is that it was an exponential decline from when I bought my first to film being pretty much a dead industry.
And yes, Kodak executives missed it. Photography has always been an odd medium. There was such a fight for respect within the art world for photography (generally), and those who finally achieved artistic respect were reluctant to give the young upstart (digital) the respect that it took decades to earn. I expect Kodak executives missed the mark on where professionals were headed.
But there is a bit of a revival, I think (similar to the revival of vinyl records - for some of the same reasons). Unfortunately, the market is so small that the cost is prohibitive. My expenses for my darkroom class this year are around $300 (not counting things I would have to buy for a digital class, as well, not counting chemicals which are covered by the course fees, not counting the supplies I have from my first class 2 years ago, and bulk loading my own film). It has been 2 years since there were enough photography majors to offer the class I'm in currently. It's supposed to be offered every semester. And - Kodak is missing the mark, again. Ilford film is signficantly cheaper (and I like it better). Arista is about 60% the cost of Ilford. I haven't tried it yet - but at $50 for a 100' roll, I'm tempted. As my instructor said, she learned on Ilford and she's loyal. If they don't make it attractive to art students to use their products by pricing them at a point equivalent to the market (at least with a student discount), those beginning careers with film will become loyal to other brands.