When I was reading for the bar in 2011 (analogous to 'taking' the bar in the US), one test, that of writing 'opinions' was, incredibly, still a handwriting-only assessment. It was expected that you would have to turn in something like a dozen full pages to cover all the pertinent topics in the exam question.

Having primarily touch typed from a young age and being in possession of some truly horrible handwriting, the only way I could get through it was to spend half an hour practicing -every day- in order to reach the requisite speed.

I looked then at the experience of handwriting that exam as massively anachronistic, and a decade later, my feelings are the same. However I can now handwrite at a decent pace, and I still find going to pen and paper a great aid when tackling complex problems.

Is it a vital skill? I don't think so, but I'm quite certain it's a helpful one. Gen Z won't miss it, but then, playing a musical instrument isn't vital to one's education either, but few people who do would say they regret spending the time to learn it outside of school.