Paper modelling is nothing new. My 'boss' (do volunteers have bosses?) at the Maritime Musuem is an avid paper ship modeller. I also know some guys that do Warhammer 40K models (tanks, flyers, and suchlike) from paper.
I myself used to worry about durability issues until it was pointed out to me that when properly sealed, paper is just as good as wood. I've used paper to create sails for boats, and I've done a tiny bit of experimentation with it for car sides. The DSRR 'coach' I built had a cardstock roof, for instance. In many ways, you take the techniques used for etch brass kits a bunch of steps further.