I think the problem here is how we're looking at the problem.
There is nothing inherently wrong with a paper ballot. Given the right format it can be easily counted (electronically) and gives you the ability to easily audit the result.
The problem is the interface to the ballot. Using pecil or what have you is prone to errors and can pose problems. So why not create an electronic interface that creates a filled out ballot that can be double checked by the voter.
Why is this so hard?
I think the problem here is how we're looking at the problem. There is nothing inherently wrong with a paper ballot. Given the right format it can be easily counted (electronically) and gives you the ability to easily audit the result. The problem is the interface to the ballot. Using pecil or what have you is prone to errors and can pose problems. So why not create an electronic interface that creates a filled out ballot that can be double checked by the voter. Why is this so hard?