Hard disagree. The demoscene is entirely comprised of code that produces art, with insane tricks which are themselves art. Which sort of blurs the entire concept, as you can stretch this reasoning to kind of encompass anything, as per the pen and paper example you provided.

For example, is .kkrieger demo? Is it art? Is the game itself art or just the textures, 3d models and locations and enemies and everything else that it produces? Though only the code generates everything, like in demoscenes, so is the code art?

Kind of subjective really.