The problem with paper launches is that it creates false expectations.
Company A knows that Company B is about to release a killer product, but A has nothing to counter B's product, so A does a paper launch for a product that either will not be out for a while, will be out soon in insufficient quantities (i.e. prices soar), or simply will never see the light of day. As a result, people wait...and wait...for the superior-yet-ever-unavailable product, eventually becoming frustrated with the marketing manipulation. Company A loses rep; Company B loses sales; and consumers lose opportunities/time.
Paper launches are only good in the short term. But this short term benefit (for misinformation) should not even be allowed to exist, especially not when the media is manipulated into deceiving the general public.
Review sites like Anandtech have been suspicious and critical of paper launches in the past.