Quote: "So how's this any better than just scanning the paper with a scanner?"
Once you've tried it, you will appreciate the difference between this and scanning.
It actually records pen-strokes, so you can dismantle the document quickly into different sections.
The gadget has 26 folders with up to 99 pages per folder, and transferring them takes less than a second per page. I've scanned before, and I can tell you it is slow enough to put you off within 2 or 3 pages.
It also doubles up as a mouse/tablet when plugged in. It's not pressure-sensitive, but just fine for normal applications.