Does a digital backup contain the same information as a paper backup? 

Put another way: If I make a thousand offline transactions with a thousand new addresses and later lose my computers to a house fire, will I be able to access all of my funds via a digital backup, or can this only be accomplished via the paper backup?

Furthermore, if the digital backup and the paper backup are both capable of recovering all of my funds, why does my watching-only wallet give me the option to do a digital backup but not a paper backup?

Thanks!