This is what i've heard basically, in my area some police channels (tactical channels?) are digitally encrypted. However, that leaves plenty of open channels to monitor.

As for everybody going digital/encrypted, I have spoken with a veteran HAM operator and he told me that going that route is still pretty expensive so we should still have a few good years of listening enjoyment ahead.

P.S. : I just ordered a Uniden BC-246T online. Woohoo! :P