Yes, it's time to update. There's almost nothing left that is better with film now. Meteor photography and certain types of large format largely. Some more dynamic range in print film but I expect we'll see that beaten soon.

I recommend selling your Pentax lenses while they still have a good market value on eBay and going with whichever you prefer of Canon or Nikon. Not because Pentax doesn't make good equipment, I am sure they and the others do. But in Canon and Nikon you will have a much bigger community, and a much bigger aftermarket for buying and selling stuff, as well as 3rd party vendors who make stuff for your equipment.

I have a new page I am working on for this at http://pic.templetons.com/brad/photo/what-digital-camera-buy.html