I hear you. I too love paper. I too am astounded by the versatility, simplicity and beauty of it. It will not be replaced for my personal notebooks. And yes, something to replace pen and paper would have to be astounding.

But I still have problems with pen and paper.

I like the ability to add to notes and change them. Professors sometimes meander about in lectures, and I sometimes want to reorganize the ideas they present.

You cannot search efficiently with paper. I have terrible hand writing on paper. Papers wrinkle and drive me crazy. I write slower than I type - and it's assumed (by professors) that people are typing so they teach at that speed (ppt doesn't help). Paper cannot be as easily shared as documents.