This ambivalence came through in the comments. By far the most frequent comment was that a mixture of paper courses and exam courses was best, and that some subjects lend themselves better to exams and some to papers. Many students wished that grades did not depend entirely upon just one effort at the end of the semester. I'd prefer three hours of hell. Other pro-exam commenters pointed out that exams, at least potentially, covered the entire course.
Exams form a synthesis of everything taught.
Students felt that exam grades were more random, more a function of luck than paper grades. Students favoring papers felt that stress levels were reduced in a paper course. Paper grades were more likely to relate to the amount of work put in by the student. Moreover, paper courses allowed students to get instructor guidance and feedback before submission of the final, graded products. But there were many complaints about papers.