I agree for the most part, but it also depends on where you live. Living here in the desert we use cypress mulch in our racks and still have to mist to keep humidity up during sheds.
Paper towels can definitely be ingested! And if/when it happens it does not end good! If a small piece of cypress mulch, aspen, eco earth or similar substrate is ingested it can usually be passed without any issue. Paper towels on the other can't.
I'm not saying paper towels are a bad substrate to use but it has a risk just like everything else.