As someone who is in charge of printer services, and google cloud print and such for 15000 users, I can assure you that my goal is to be "Paper Less" as fast as possible. It is an ongoing goal, and hence it isn't "paperless". There are times people still need hard copies, but getting people to print less has to be a sustained effort to educate people on alternatives.
That being said, most teachers still want hard copy versions of student work, because it is faster and easier to grade 30 assignments on paper than it is to do so on digital, but only if you ignore having to haul those papers around to and from schools, passing the assignments out, collecting them, and giving back the graded versions etc etc.
It is all about perception, they don't count certain aspects against their "grading" time, because of the disconnect between managing the assignments and grading them.