In this case I mean "paper" as in paper-like bitcoin.

"Hosted wallets" are just an IOU from an unregistered, unregulated and uninsured bitcoin bank.

Here's why they didn't catch on:

• https://blog.trezor.io/paper-wallets-a-relic-of-the-past-1f711ba82b8c
• https://doc.satoshilabs.com/trezor-faq/_images/compared_to.png
• https://en.bitcoin.it/wiki/Address_reuse
• https://np.reddit.com/r/Bitcoin/comments/670zhy