The reason some recycling programs don’t accept paper products is the same as the reason why companies focus on a specific market, manufacturing plants only manufacture a few things, and people choose one job or area to specialize in: if you focus on one or a few specific things, you can be much more efficient at it.
Not all products are recycled the same way, and not all programs have the resources necessary to recycle different types of products, so they are forced to pick and choose.
The reason they choose something other than paper is most likely because paper is one of the most widely-recycled products, you can pretty much find paper-recycling bins everywhere, so they thought it would be more helpful and meaningful to provide people with the opportunity to recycle something which does not have as many readily-available recycling centers.
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