The rest of my bitcoins I intend to hodl. They are currenctly on an exchange, and I want to move them out of that exchange and hold for a year++ (unless hell breaks lose). So that's why I wonder if there's any point in buying a harware wallet for storage, since it would also need a paper backup... In other words, it isn't really safer to store.
The reason people tell you to get a hardware wallet, is because of bitter experience of holding coins on exchanges.
In the time I've been in bitcoin I have seen MtGox crash because of hacking. Cryptsy and Mintpal disappear with people's coins because insiders in those exchanges decided to steal them. BTC-E got closed down by the FBI because it turned out they were shady mafia and it was them who hacked MtGox.
Bitfinex has been hacked several times, as has Bitstamp and Poloniex. Bitstamp and Poloniex made good the coins - but what happens next time when the heist is bigger and they simply haven't got either the reserves or insurance to compensate people?
Remember that all these exchanges are un-regulated, with the exception of Gemini which has a NY State licence.