I have always used traditional logbooks since the day I started flying. I also enter every flight into my online pilot logbook as a backup, and for easier reference. As a member of EAA, I get a free account on AeroPlanner.com, an online flight planning service. A little known side benefit of AeroPlanner is their online logbook. Everything is categorized just like my paper logs, and after I enter everything in, it gives me column totals and I can double check my math in my paper logbook.
There have been a couple times when I've been traveling on vacation and wanted to rent a plane from an FBO. Not having my real logbooks with me, they have always accepted a summary printout from AeroPlanner as evidence of experience. Also, when I redo my insurance each year, it's very easy to ask the software for sorting results by time in type and hours in last 12 months, etc.
While I would never rely solely on electronic logs, they definitely have their benefits.