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.
Yeah those wallet are safe to save bitcoins.. but its better to choose electrum yeah electrum is better to preferred..
I already tried electrum but never had any problem..