I was at Epcot today, and I was at Test Track at noon and didn't see them handing out paper fastpasses. That may have happened after I left. My DH and I were very surprised that the rides were out of fastpasses so quickly because the park wasn't really that busy. We didn't know if it was a system glitch or if it was foreshadowing of what is to come with FP+.
We are testing the MagicBands this week (will post more about it when I get home). We haven't had any major issues (i.e. it has worked for us 99% of the time without glitches), but I foresee major problems especially when everyone is using the system. Right now, the use of the MagicBands are limited and the writing is on the wall, For example, we arrived at Epcot before opening on Sunday, and they started letting park guests in at about 8:55 am. It took over 20 minutes for us to get into the park even though we weren't extremely far back in the line. The use of the bands/new readers are slowing everything way down. It has been the same for the fastpass lines - the lines have sometimes been 30+ people deep just to get on the ride because of having to scan the MagicBand which is crazy because not many guests even have them at this point. I just see this causing major headaches. We had FP+ for Soarin' and Test Track today so no issues getting on those attractions, but the standby lines were very long on a not-so-busy day. I also definitely feel the limits of only having 3 fastpasses per day (even though I have been double dipping and using my regular room key also - don't judge me!).
All in all, this cements in my mind that we will be holding off planning another WDW trip until the dust settles on the whole MagicBand/FP+ thing. I have not liked the idea of it from the beginning, but I wanted to try it with an open mind. It has enhanced our trip in some ways (it was great not having to dash to Soarin' first thing in the morning), I also see a lot of potential negatives mainly much longer wait times and the loss of spontaneity. For us, the limit of three fastpasses is a big negative especially at the MK. In a normal day there, we probably get at least 6 or 7 so being limited to 3 will really change how we tour the park. I refuse to wait in super long lines because I get annoyed. When things are too busy and I get super annoyed, I don't go in a gift shop and buy stuff - I go back to the resort and swim or take a nap. I think management is missing the big picture on this one. Unhappy guests are going to complain or leave, not spend money.
We did not add charging privileges to our band because we like to use cash so no info on that.