Merits of paper are huge and can't be overvalued.
- Paper has no limits, because it has extremely simple user interface. No predefined style, rules and guidelines. No predefined interaction. - Paper is vastly collaborative - easy to share, easy to pin on the wall and discuss with team mates. - Paper doesn't bond you. You can always easily throw away what you have designed in 5 minutes. You don't need to focus on details! - Paper teaches designers that what they have in mind matters, not tools
Your tool doesn't address those advantages of paper properly.
Adobe created similar app and doesn't achieve much.
Besides, problem with conversion from paper into digital wireframes is already resolved. UXPin notepads and UXPin App are quite popular in the UX world.
Check out the video: http://youtu.be/-7VitOBVfCE
You can start your design process on paper by sticking UI elements on paper to the notepad, take a picture of it, send it to the app and it will be auto-converted.
So while your website looks nice and the video is great, your conception seems to miss the point.
Sorry about that. I wish you all the best.