> Are we saying that we are okay to cut trees to make straws when we could make them out of petroleum ?

It’s more okay to make things out of paper than plastic, yes. Plastic waste and microplastics are a huge problem. Trees are a renewable resource.

> Moreover, paper straws are not even recyclable due to water content which makes them soggy. Plastic ones are almost 100% recyclable

Plastic straws are almost never (literally never?) recycled. Paper straws are supposed to be fully biodegradable.

> Most importantly, unlike plastic straws, they are laced with glue and other chemicals which gets ingested.

But yes, this and the usability issue make the other points moot (n.b. leaching harmful chemicals is a concern that also applies to plastic straws and paper cups). The vast majority of existing straws should be replaced with no straw, and most beyond that with reusable straws.