I also had a paper driving licence until recently (well, I still do, it's "somewhere" in my filing system (I actually virtually never drive, I rarely have need to since moving to cities from the small town where I grew up)).
I decided to report it lost and convert it to a photocard licence recently simply to have as a form of photo ID given the increasing number of times that you now need to show it (remember, the UK "doesn't have" compulsory ID cards, hah, so they're just introducing them de facto by stealth), and I'd rather not have to carry my passport around.
I really wouldn't mind if we were to have ID cards, it was the many tentacled database that I was very much less keen on. Except, I suspect that the many tentacled database(s) now exists and interlinks behind the scenes (credit reference agencies, etc), and we don't officially have ID cards, but just make life awkward for everyone instead.
Biting the hand that feeds IT
