In a post featured on The Passive Voice, linking to a blog on selfpublishingadvice.org, writer T E Shepherd describes how he prefers to write the first draft of his books out by hand. He specifically cites 4 reasons why it is advantageous to write by hand: accessibility, portability, power, and legibility. While I agree with the 4, I might add as I previously had, that it also is mentally invigorating compared to typing on a computer, as well as less distracting.
Either way, this writing by hand thing is going to be what I keep moving towards. I just see it working so much better for me than working all of the time on a computer has been.