The procedure around here would be nobody could touch those ballots unless there were one Democrat and one Republican involved in any vote handling. Besides that, the discarded ballots should be saved. I don't know what the rules are there. The procedure described certainly isn't confidence building.
One further thought from the various "reasons" as listed here is, faxes are all the same size, no matter what kind of paper used at the senders location, the receiver gets them and prints them out in 8 X11 paper.