A: First, I love that you can quote me from a year old class! I must have made an impression. Second, remember that YOU decide what's best for your family. I can't do that and no one here is judging you. (Unless you're buying your paper products from Wal-Mart and then, I'm judging you, but not out loud.) Third, yes. I do consider paper products "luxury items." I don't remember saying that, but a more accurate description would be a wasteful and less Earth friendly item than regular old dishes and cloth napkins.
We do use paper products. Usually when we are traveling, I purchase a roll of paper towels for the picnic basket. Sometimes, I also purchase paper plates and napkins for parties. I don't have a ban on them altogether, you see.
I save money by using my regular dishes and by using the basket of mismatched cloth napkins we keep in our kitchen for meals. We simply throw them in the wash and use them over and over again. We've been doing this for going on 16 years now with a lot of the same napkins, so I think it's safe to say it's a money saver for my family. I have picked up cloth napkins at clearance sales, yard sales, thrift stores, and occasionally, I am given them as gifts. My middle-Little has become a proficient sewer, so we have a few she has made as well. It adds a funky and fabulous touch to our supper table and it makes us feel like everyday is earth day.
For me, the few minutes it takes to wash the dishes and the napkins is totally worth the money I save by not buying paper products. This may not be the case with your family and that's okay!