I have recently shot tests on the Varicam for a movie that is currently in production in South Africa. The Movie is destined for cinema release and will be blown up to 35mm. I was surprisingly impressed with the blow up tests and expected there to be a lot more noise, especially in the blue channel, than what I saw on Big screen.
I still regard the Panavision HDW F900/3, HDW F900R and HDC 950 as better options for 35mm projection.
I have found that the Latitude on the Varicam is not at all comparable to the Sony 900 series cameras, but it does have a different look to the 900's, whether it is better is a matter of opinion. I have found that the best camera to use for blowing to 35mm is obviously the Genesis and following that I have had great success with the Panavision HDW F900/3 using Digital Primos and zooms. Especially the versions with the Hyper Gamma extention Boards as can now be found in the 900R.
All that said whichever camera you decide to use, I would recommend shooting extensive tests to predetermine your parameters and post workflow.
Good luck with your movie