By recycling, you are conserving natural resources and reducing the amount of pollution and greenhouse gasses released into the environment. Also the impact of landfills are greater than simply the space they take up. By reducing the amount of organic material sent to the landfill, by composting, paper recycling, etc., you are helping to reduce greenhouse gasses. Recycling bins are ugly and cannot fit into the local aesthetic. Recycling bins, which are the same as trash bins, come in every shape, style, and color and can fit into nearly any aesthetic scheme.
Someone goes through the trash and pulls out the recyclables before it goes to the landfill.
Anything thrown into the trashcan will end up in the landfill. The labor required to sort through trash after it has already been mixed is prohibitive and so almost never happens. The only effort here is the difference between throwing trash into one bin or another. Only white paper is recyclable. Just about any type of paper is technically recyclable, including envelopes, post-it notes, colored paper, newspaper, and magazines.