Fully agree. My son is 21 now, so slightly too old to have experienced the "compulsory" digital schooling, but even 10 years ago, when he started secondary, they were using the show my homework app, an online VLE for viewing worksheets, revision notes, etc., electronic textbooks, and email for contacting teachers and for teachers to email worksheets/work for cover teacher sessions etc. Most pupils had smartphones and would take photos of the white board and lab experiments, etc. In music, sometimes the homework would be to write their own piece of music using a music generation app. To learn vocab in languages, they'd use an app called quizlet that they could do on the move, such as when on the bus. They even had to make a video in French to put images to a French poem. Using excel, word, and powerpoint was very common.
It did DS no harm at all. In fact, he benefitted massively because he was terrible with handwriting, so he could do his homework much quicker and more accurately (and better edited etc) by doing it on Word rather than writing by hand.
By the time he got to Uni, it was all online anyway, nothing was on paper. All "admin" with the Uni was via their portal. Lecture notes, worksheets, past papers etc were all online. Any "hand written" work he did was scanned/photo'd and uploaded to the portal for marking. Yes, end of year exams were a worry for him, but he managed, and he'd already "passed" his degree anyway because he'd got very high marks in the projects, weekly tasks, etc., so all he had to do was get 40% in the final exams to get the "pass" in them. In the end, he did far better than that and got his First in Maths!
Now he's working in one of the UK's biggest insurance firms. Everything is done on the work provided laptop. His entire office block is entirely paperless. He's only used a pen twice in the 3 months he'd been there. Once to sign a leaving card, and the other time to sign in at reception when he forgot his lanyard/pass! He's doing further studying/exams to qualify as an actuary, and all that is entirely online too, even the exams.
Pen and paper is the past. If people want to use it, then they're free to do so, nothing is stopping them, but people need to realise that most workplaces are now computerised and needing pen & paper in a working environment is getting less and less common. I watched my car being MOT'd at the weekend - the mechanic did all the "ticking boxes" and recording measurements etc on a tablet!
Yes, at the time, we worried about him spending too much time on screens as he also spent a lot of time gaming on his xbox and laptop, but we "parented" him to make sure all devices were turned off mid evening to prepare him for bed, and we made sure we took him out enough, or that he went out playing footie with his friends or whatever, to get a change of scenery away from the house and his screens.
I genuinely don't think he'd have done as well as he has in a "pen and paper" World. His handwriting was awful, he hated reading books, etc - all that was before his screens!