I use blockchain for my wallets but it also depends on what security I need, if I only have low amounts I store them in a online wallet mostly blockchain. If I need real security I use a paper wallet because this very secured and also pretty easy if already done it sometime.
I never used any paper wallets. but I believe they are very safe as you said above. and would be better choice to save big amount of btc.. blockchain also safe enough for store some btc, I used blockchain to store 0.5btc in past days and I never got any problem that time.. now adays blockchain having some issues in transactions.
Xapo is also good. but my preferred wallet is electrum now.