I think this is not the same as hardware wallet. If it is hardware wallet, the seed phrase is still secure and safe than to be compromised, unlike a private key that that is written on a paoer or card or where it was easily found written, I can assume it to be like that.
So hacking a hardware wallet is theft, but stealing a paper wallet isn't? Why?
A paper wallet, if not written in a special way, is the same as cash.
No, it isn't. The owner no longer has access to lost cash. The owner may very well still have access to these bitcoins.