I'm using a desktop wallet. It has proven to be very reliable. Many people are using online wallets, but I don't completely trust online sites and feel better having coins on my desktop.
I never bothered with offline/paper wallets, I'm not that scared of being hacked.
Desktop clients are fine in terms of using them for the regular sending and receiving practices on a daily basis. Paper wallets are meant to provide people an ultimate form of offline cold storage. It will make any hack attempt unsuccessful, plus you are not exposing yourself to the risk of a system crash that might result in potential data loss, or that your HDD suddenly stops working completely. It's a complete form of protection. You should value your coins more, hackers are not the only threat....