Digital video is not necessarily more compressed than analog film. The way your phone shoots it, yes. Modern digital cinema cameras however are both higher resolution and have a higher dynamic range than motion picture film. They shoot raw imagery that is incredibly high quality and detailed (and indeed needs large SSDs and hard drives) and is not behind film in any way, quality wise. This was different, even 10 years ago but by now, if all you care about is quality, digital is more than enough.
However, what digital cameras cannot reproduce is the the texture the feel and the specific look of film. Post processing gets close today but not all the way. Besides, the process of shooting film is very different and some directors and photographers prefer the more difficult yet more down to earth process.
Btw, in practice, most blockbuster films today are actually shot on digital cameras, especially the likes of RED, ARRI and Sony. Analog is only used by some productions although they are a minority now. Fanatics like Tarantino and Nolan are doing their best though to keep film alive and in the case of Nolan, push it to the limits by shooting 70mm and 70mm IMAX film. Especially the latter is better than any current digital camera but due to IMAX being much more difficult and expensive to shoot, almost no one besides Nolan uses it.