One good EMP burst over Washington will turn believers of the paperless society into paupers. Electronic is by fiat. Paper has history, and we should all remember the line about sheeple who disregard history ...
As for going electronic, I write about 30 checks per year, and most of those are tax checks which my bank refuses to handle electronically. I guess in case of a mistake the bank can fight other banks on an even basis, while the government will just say "Didn't get the transfer - screw you" to the bank, and the bank doesn't want to deal with that. The only paper checks I get are either rebate checks or gifts from relatives.