This is interesting. For a while I used to print out code and debug too - more due to resource constraints: didn't own a computer, and my high school's computers were available only for limited hours per day. I used to code my first iteration also on paper - so that in the limited computer use time, I could type in the code quickly and actually see it run. Wild times but I think it made me good at programming. My friend (who did have a computer at home, but lived far away) and I co-wrote a program called "graph generator" that could plot math functions, with me doing my share on paper and giving to him to type in :) This was in the Turbo C++ IDE and since GUI based programs were unusual (at least as a project in highschool - India, 1999) it temporarily made us popular. Well, wow, that was fun to reminisce!

Even in 2010 at Berkeley I was doing a fair amount of paper coding. Some of the professors gave paper-only tests, and we'd practice a bit since you didn't want a midterm to be the first time you had to do it.

Though I also remember sketching programs on paper as a teenager for my TI-83, since it was annoying to type everything out and then have to make a bunch of edits.