Has anyone used both this and raphaeljs? How do the two compare on features, browser compatibility, performance, etc?
Raphaël on the other hand, provides a simple system for making relatively "static" vector images with very good support for a lot of browsers (IE6 support, even). If you need user input, I think I would've tested out Paper and most likely ended up with that.
So basically: Raphaël for vector images that may be scaled and simple, dynamic images. Paper for animations and e.g. games.
If you have a similar situation on your site/application, I think it's perfectly reasonable not to support anything other than modern browsers, but you have to look at your own stats.