Yes, all the time. Because the market is dynamic; it's constantly changing in that the existing plans and strategies that used to make money don't make money anymore and/or there are new strategies that have been observed of being able to make more money. Instead of blindly implementing the new strategies or modifying existing strategies, it would be more prudent to paper trade the potential strategies first before implementing them in live trading.
Live trading 1 share of a $5 stock is more valuable than papertrading 1k shares of a $50 stock. Like learning how to golf on a video game = papertrading vs learning on a real course = live trading. Discipline, emotions, and risk management are only Really learned by trading live.
The market may be dynamic but there are core principles which never change. It's been many years since paper trading and that was when I didn't know how to trade. I use a system which could be used in any country, any exchange, any time and it need never change over time, plus it's very profitable.
Practicing on a simulator with virtual money is better than losing your real money, especially for beginners who have no market experience. It’s good for knowing the basic functions of a trading platform and once you have the confidence of using your own money, you can start live trading anytime.
The most value in paper trading is revealing what does NOT work. It's also easy to be sloppy and non-disciplined so that what appears to be "good" results are not as good as perceived and give a false sense of worth/success to paper strategies. That's why when you think you've got a winning strategy on paper, start out trading small with the real money.
Yeah you can martingale and blow out a paper account without any ramifications. But when you do well... ooh boy.
I'd say it was more like learning how to hit a draw on the driving range as opposed to learning while your playing for 10 bucks a hole. If you can't make money on paper, what makes you think you'll do better when you throw in the emotions involved with losing real money?