Movies are absolutely still made and distributed on film, the physical dimensions of the film determine how much detail can be fit on it. A larger frame size means you use a bigger photosensitive area to capture the same picture, which effectively means you get better “resolution”. Though on film the image is captured by photosensitive particles or “grains” on the film.
Film is also still used in some movie theaters as the format of choice for their projectors. Often movies are distributed in any format imaginable, both digital and film, so it can be screened in any theater, regardless how the movie was recorded. Though the amount of film projectors around is definitely falling. More often than not new installations are digital.
But film still has its place, it has some image quality benefits that digital systems cannot yet beat. This has lead to fun stuff like movies distributed on film having digital audio tracks, encoded as complex microscopic qr-code style patterns right there on the film.
Film is still able to produce “higher resolution” and it of course reacts to light differently compared to a digital camera sensor. Because of that you get different results with digital vs film, not simply “better” or “worse”.
Which is used is up to the artistic preferences of the people making a particular film.