It depends on your definition of “waste” and on how the paper is used. If you don’t make use of most of the paper and throw away a lot of the scraps without recycling them, sure that’s pretty wasteful. Also, “crafts” may not be strictly pragmatic — but then, neither is the Mona Lisa. Crating, when done with a mind for not wasting leftover paper or glue or what not, is a positive creative outlet for people. Crating, to my mind, is no more or less wasteful than any other human creative/artistic endeavor.
Not necessarily. Craft projects can be a great way to recycle things. Especially if you’re using old newspapers or tissue paper, you can find creative ways to reuse them. Try the cited site for projects to recycle old household items like cds, blue jeans, books, and plastic bags.
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