I've seen the paper water pump gaskets blow out - but that's usually if they are not coated in sealant. The paper absorbs the coolant and becomes soft and cooling system pressure is enough to force it out.
Mostly we use the OEM gaskets because
A : The good quality pumps like Aisin and NPW come with the metal gasket
B : The gaskets come off clean requiring no clean up of old sealant.
C : They always work, they never leak (assuming you don't have stripped mounting bolts - we routinely thread-repair all of them).
And Fail-Pro is great for old Chevy's. Terrible for imports.
GD