It could just as well be the worst of both world too though. Loss of physicality and constraints because of unlimited virtual paper combined with notes you can’t read because of handwriting. I prefer your optimism though.

Most tablet note taking apps I've seen transcribe the hand written notes to text.

I recently bought an android tablet with proper wacom stylus support and active stylus for my 4 year old kid to practice writing (...they want to do it with the tablet, but don't want to on paper...I figure any practice is better than nothing). The active stylus is very good, but I can't imagine using it for any serious amount of writing - it just feels too weird.