Eh, paper displays are a little old. The technology has been around for a while now (do a search for organic LED's).
How it works is there are electrochromatic substances that act like the diodes. They change color when there is a voltage shift.
They are about a third the thickness of LCD monitors, have the same resolution capacity, are cheaper to make, easier to make, same brightness, better efficiency, and they're flexible to boot.
The two problems are longevity as they don't last as long as CRTs will, and that they're introduction to the market is being hindered by television companies who have invested in LCD, Plasma, and HDTV. A Tv that could come as a poster that you could hang up on the wall just doesn't sound exciting to them when it would be a sixth of the price.
However, on the plus side, samsung was supposed to introduce an organic LCD monitor this year, though after the recent raid that might be pushed back.
As far as computers on paper, I don't know, but that'd be pretty cool. I'd be afraid of hurting it though. Especially when I flip through my notebooks and see the condition of the paper in there.
