Really?

I have the exact opposite view. I love writing it my code on paper. It makes me feel like the creative part of the equation while I leave the 'mechanical' computation to the dumb machine. Debugging and understanding difficult code samples is easier too.

I once read that Knuth(?) never used a computer and wrote everything on paper for his sectetary to type.

I personally don't write literal code on paper very often, but I draw workflows, interactions between pieces of code, thoughts and notes that I then refer to when coding. I spent about 4 hours the other day writing in my notebook working through a large refactor. I don't think I've written so much in such a short time since taking tests in school and I am sure the paperwork saved me a few days of stumbling around.

No idea, I just enjoy paper and whiteboards more, I feel more creative as well. Also the fact that you're cutting out distractions.

I write tons of pseudo-code on paper and it helps me organize my thoughts far better than I can do on the computer (maybe I haven't found the right tools). I seem to solve more complex problems quicker too on paper (ymmv of course).