According to their website the £500 additional cost for paper manuals is a 'discounted' cost when brought with the full course, to add insult to injury.
Whilst an ATPL isn't documented as such like a degree, in 10 years to come, I personally find it quite valuable to have copies of the materials I studied for. Besides, in 10 years I expect the software BGS are using won't be compatible with any new operating systems that are around.
I contacted PadPilot (ironically) today, along with CATS, and have been informed that paper manuals are included with both courses.
I'll be contacting Bristol.GS with my concerns, let's hope I can get a positive answer and hit the buy button!