It has nothing to do with medium, it has to do with review of mixed material for information that is not subject to FOIA (personal privacy, trade secret, confidential commercial data, and other legally protected information) and avoiding the requirement for that review being a mechanism for using FOIA as a denial-of-service attack on federal agencies.
> But these days, just one DVD or flash drive could hold all 329,000 pages.
Which doesn't materially impact the workload of reviewing it prior to release.
I doubt "copying" is the actual bottleneck. It's totally doable to photocopy 500 pages in an hour (if you have a document feeder). What they're talking about is probably more the manual work to search, evaluate material for appropriateness to release, etc.