Previously I tried to memorize passwords. I ended up forgetting a lot. It was frustrating trying to remember what my password was, or even whether I had an account on the site or not. The user experience of being able to ctrl+f through all the accounts that I have in my database is very refreshing.
I have a quite high value video game account, and 6 people have specifically targeted me. They've attempted various things, such as trying to exploit password reuse, and utilizing previous website database breaches that I was in.
I don't see what benefit the paper would have. Whether it's paper or a password manager, if my computer is compromised they'll get my accounts with a keylogger.
I've never lost my wallet, but my brother lost his a couple months ago. I never really change my passwords except when I was switching from my old crap password to unique strong passwords in my database. The problem with losing my wallet would be that I would lost access to all my accounts if that was the only copy of the paper. It would be an availability problem.