Digital documents are extremely useful within the classroom, children can save and store their work, keep 
their photos organised in folders and files and at the end of the year the students can take home a broad work sample of what they have done. I personally like the fact that digital documents can be revisited, edited, altered, and scrapped. In this manner children learn to be selective, they are not expected to finish all work in a rush, but can come back to their projects at any given time. It also gives them a lot of responsibility for their own learning, they must decide what they keep and what gets tossed into recycling.
For teachers, this too is extremely beneficial! Storing documents on the computer allows them to be reused year after year, as well as making it easier to modify worksheets for each class.
There are always the concerns about how much the server can handle if you were uploading documents to the internet, and how much memory and space your computer has to hold these documents. One of the main concerns is what if these documents are deleted, corrupted and inaccessible because of viruses or computer malfunction? Ideally this is always going to be a problem, some solutions are regularly backing up work on the computer, saving to disk or cd, saving to an external hard drive or having a physical copy. Of course, Im terrible at doing this myself, but if it is some thing important such as contact phone numbers or a resume (or assignment…eep!) the best thing to do is SAVE it in additional storage just in case.
Here are two academic papers that discuss the concept of digital documents.
Pandora: Collecting in a Digital World: http://pandora.nla.gov.au/documents/artifacts_symposium_pandora.pdf - This is a teeny bit technical, but discusses digital documents online and particularly archiving them appropriately.
Coping when everything is Digital: http://www.bakercyberlawcentre.org/ddr/ddr_wp_A4.pdf
A Longer paper (moreso a book) that looks at various aspects of digital documents individually such as email, databases and webpapes to mention a few.
