Most people I know, and I include myself in this, mutter about the state of their handwriting when giving someone a handwritten note, or a manuscript with scribbles all down the side of the page.
I've been known to rewrite short notes or a set of directions, especially if they're for someone else.
I'm sure at some time in the distant past I had reasonable handwriting. It was never wonderful, but at least it was legible. I recall 3-hour exam essays that looked better than my handwriting now. Of course, also like everyone else, I blame the computer for this!
Having said that, I wouldn't swap the wonderful convenience of Cut and Paste, or performing a quick Find and Replace and changing a character's name (and back again sometimes!) without even blinking.
However, I do often use pen (or pencil) and paper to write a scene, plan future chapters, or get the sense of how a character speaks by writing out scenes full of dialogue. There's something about physically writing that frees up the imagination.
On that note, here is an article from the New York Times I found interesting. It also reminded me the first thing I used to do when starting to study for exams was to write out my main revision headings and the important points within each, and use that as my revision. But then I was a bit of a girly swot!