I try to maintain a mix of both so as to get the advantages of both. I find that taking notes in a meeting/class I can take it much faster on paper and I use different colored pens to keep my own comments seperate.
My problem is the merging of the two, I find I often have problems locating data in lofi or misplacing what I wrote down so I end up trying to retype all my notes and loose a bit in that process, or scan them in but I still can't search across scanned images.