I started out paper scrapping with my mom several years ago, but then when I got married, we were in a tiny apartment living on grad student stipends...so I started digital scrapping. It's cheap, takes up no room, you don't have to print the already digital photos, and also I am a perfectionist (love the "undo" button).
I have made over 2000 digital layouts in the past 4 or so years. I have printed out about 30 of those (although I have plans to print a few more soon). I just don't see a point to printing them all out. Honestly, more of my friends and family see my digital layouts in online galleries, facebook, etc, than would in person.
I have started to get back to paper now that I have more room and money, but it does pain me to spend so much on supplies, and oh do I wish for an undo button on paper!
I say, do whatever sounds good to you! As previous posters mentioned, the lines are becoming more and more blurred anyways, so chances are that you will end up dabbling a little in each Happy scrapping!