It's a lot harder to email paper? there aren't many good paper VCS? Paper is great for quick sketches and has its place. Digital is good for lots of other use cases. Maybe use what suits on a case by case basis?
'...this screen looks like.. well you know a stock tableview'
And sometimes these people aren't in the same room/building/country
Simply dismissing the tool because you cant think of a use-case is a bit short sighted.
PS: also when designing for the iphone, elements have a surprisingly different feel when shown on a device.