I know people have been talking about and experiementing with paperless environments in composition for a long time, but this is the first time I've actually tried it myself. I'd be interested in hearing from people who have more experience with these sorts of electronic tricks (or treats?) in the classroom.
I'm using an online program that comes with our textbook. The students upload papers for peer reviews and for instructor comments and grades. There are drop down menus that allow the instructor to insert automatic comments in the papers along with pointers to the handbook and to exercises on particular errors. McGrading, I suppose.
As with anything, this has its ups and downs. I think it will work well for me in that I have big class loads and limited time for individual attention to the students. I also have students who need extra help with grammar, and I work in a place that does not have a writing center. The online classroom does give students the opportunity to seek more help on their own should they so desire.
The downside, I think, is that the students who "don't get it" and tend to fall by the digital wayside are the ones who are in greatest need of the extra pointers and exercises and online resources.