First, welcome:
Ok this one can be a toughie…. So here it goes:
Like Craig, I don’t see any real superiority of film vs digital. The convenience factor is the main point here.
The number one reason for digital’s popularity is DELETABILITY! You don’t have to take the photos you don’t want to keep.
The second reason is the cost factor. Most modern digitals are now on par or cheaper (price wise) than film cameras of the same quality. One 1GB card can be reused over and over. A roll of film can only be shot once.
Digital is more ‘environmentally friendly’ (jeez I hate using that phrase) than film because most digital prints are now water based pigments and dyes. Not salt-chemical rendered. (And there is the silver content. (Heavy Metal)).
As for editing features, that aspect along with so many others have gone digital. If you knew the amount of editing and manipulation that went on with film, it would surprise you. Layout and Design artists of years past were taught these arts of photo manipulation as part of the degrees they were earning. This has been replaced with the computer, and is a bazillion times cheaper than a Layout and Design Professional. (Now known as Graphic Artist).
I don’t really know of too many laws regarding PhotoShop manipulation as it is pertaining to citizens.
As for professional etiquette, let me say this. Anything goes. Believe it or not, that is why pros are hired. To make the better image. That takes skill, good quality equipment, and most importantly, a good eye. A good Pro photographer will have many of the traits of the Layout and Design guy of old, and be able to use those skills to satisfy the customer.
As for evil intent, that is with anything. Photo manipulation has been used from photography’s inception to do harm. As has anything else ever created. It really is something that the person doing the work has to deal with, as well as the audience.