> a piece of paper is much more secure than a database.

Hard disagree. Just require authentication with something like a Yubikey for the best of both worlds. People can take vaults all they want, but they are never getting in it without both the master password and a Yubikey and a biometric component if also enabled.

Unless they kidnap you, in which case you have bigger problems on your hand.

Or one is talking about seed phrases for crypto wallets, in which case they better stamp it into metal and hide it well.

Paper burns and you’ll be locked out for a good long time if not forever. Yubikeys can have a duplicate kept in a safe deposit box. Can’t do that with a paper book in active use.