Another point to consider when choosing between a 35mm and an APS camera are the costs: I recently bought a new camera - one of those cute little Olympus Mu things, with a zoom and other related paraphenalia. After doing some research on this topic I chose 35mm over APS for the following reasons:
  1. The 35mm camera is only slightly larger, and still fits nicely in my pocket.
  2. It's about $NZD 100 ($USD 50) cheaper than its APS alternative.
  3. It is currently less expensive to buy standard 35mm film, and it is more commonly available.
  4. The developing costs are roughly about 50% ($NZD 7) cheaper for a single 24 exposure roll of 35mm film
  5. One of the main advertising points for APS is that "you can finally load the film into the camera without any hassles". That did not appeal to me whatsoever - throughout the years that I've been using a 35mm camera, I never had a single problem loading the film incorrectly, as the standard 35mm camera film loading procedure is rather simple to follow.
The above costs/prices are very likely to change over the next few years, as APS will become more commonplace and 35mm will go the way of black & white film. But at this current point in time, 35mm is still very viable and usable.
This whole argument reminds me of PC vs. Mac, BetaMAX vs. VHS, and Netscape vs. Explorer ... will definitely be interesting to see where this one goes.