Paper or plastic?

A new paper has been developed, and it could replace plastic in a lot of every day uses:

This new paper is made out of the same cellulose your regulation legal pad, but scientists at the Royal Institute of Technology in Stockholm, Sweden were able to get the fiber so small and defect-free in this version -- about 1,000 times smaller -- that it's more than seven times as strong. By breaking down wood pulp with enzymes and beating it mechanically and then treating the tiny fibers with carboxymethanol, they were able to get the new paper to a tensile strength of 214 megapascals (MPa) compared with the normal 30 MPa. So, why should you care? It's entirely possible that this stuff could replace plastic bags at stores without all the petroleum waste.

I think shopping bags are a start, but depending on oil prices etc and enviro concerns new alternatives (and a biodegradeable, recyclable one - though who knows how nasty the manufacturing process is..) could be a big hit.