The thing about digitizing them is that you can easily share them with others, and they're much more portable. I keep all of mine in several places tho, just in case. I have a desktop which doesn't get used much anymore, so I use it's harddrive for photo and other important doc storage.
I also download them to those neat little USB memory sticks, an 8 gig drive will hold a ton of pics! That way if I'm going to a family event or something, I can pop it into a computer (or even the newer flat screen TVs) and have a fun remember when show.
If it seems like too much work (and it is a lot if you have a lot of pics) it might be worth your time and effort to take them to a service and let them do it for you, many of them offer P-shop too, to correct red eye or sharpen up faded pics. They can then load them onto DVD's or Thumb drives. If you do, it might be smart to organize them a bit first, either by time frame or subject ( all of aunty-so and so, all of brother Bill and so on....)