It is, but paper cannot be compromised in large volumes by remote actors.

Since most techies seem out of touch with how physical data storage used to work...

Your medical records may be a ream or two of paper. They don't get stored at your doctor's office, your doctor's office requests the records it needs on a daily basis. Medical couriers exist to handle emergency requests. Your data is stored in a warehouse with perhaps hundreds of employees. The threat model is different, not absent -- everybody from your doctor's receptionist to the warehouse workers have access, and can read or modify your data.