I started out cut and paste, and then started typing everything up on a computer and cut and pasting. Now, I mainly do desktop publishing. There's the problem of room and of me procrastinating and leaving everything out. Things tend to get lost that way. I'm teaching my 6 year old daughter cut and paste, and my 9 year old son likes desktop. Different strokes for different folks.
mostly cut'n'paste. my flats are not electronic. i do most of my text on my laptop and most of my drawings by hand with blue pencil and various fineliners and markers. i'm starting to experiment with a crowquill pen. i generally do the drawing larger and reduce them with a fancy laser copier/printer i have access to so that they don't look digitized. they look like crap from my home printer. i'm planning on scanning all my clean flats so i have copies and might eventually have them printed from pdf rather than hardcopy.
The first issue of Frothy was done in Microsoft Word. It was a pain in the ass to do the pagination that way. But I got it looking pretty much how I wanted it, which was essentially a ripoff of McSweeney's. Now I do cut & paste all the way. Frothy #2.5 was printed, then cut & pasted, since it was a 1/16th size and I needed super small font. Other than that I rely on my typewriter and my giant Rubbermaid bin of books, magazines, and photocopied security envelopes. I'm just starting to get into illustrating stuff myself and handwriting portions of my zines.
My zines are cut and paste, but I like very clean layouts. I like the cut and paste though so I can use different fonts and typefaces - handwriting some things, typewriting some things, printing out some things. Cutting out paragraphs and pictures and figuring out how to arrange them in an aesthetically appealing way is one of the most gratifying aspects of making a zine.
I'm in the midst of getting my first issue ready to go, and it's hand written, cut and paste with pictures from magazines, leaflets, anything lying around really. If I could find typewriter ribbon easily I'd typewrite a lot of mine though.