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I was in a tower last year. They were sequencing aircraft with little loops of paper placed onto a wooden dowel. It can and should be better. Doesn't need to be whiz-bang, but it should not be paper slips and wooden sticks. (and floppy disks)
Paper flight progress strips [1] have famously resisted replacement, even though they keep trying [2].

Every 5 years or so, a different publication will write an in-depth story about how difficult they are to replace, because nothing works nearly as well, and the controllers go back to using paper every time a new system is trialed. I think I've even read about them in a cognitive psychology textbook at uni.

[1] https://en.wikipedia.org/wiki/Flight_progress_strip

[2] https://www.faa.gov/air_traffic/technology/tfdm/efs

That is really not the worst thing about ATC. Far from it.

I have heard experienced pilots lamenting that we're still using voice on a scratchy radio, with garbled audio and people accidentally talking over other transmissions both being constant problems, for essentially all vital comms.

While I have no problem with keeping that as a fallback, there's zero reason why we shouldn't have, at least for airliners that have two pilots, a text-based communication system. We can still convert the text to speech in the cockpit to keep awareness the same, but we could play overlapping transmissions one after the other. And think of the other advantages. People wouldn't get callsigns wrong, could be alerted specially when their callsign was being talked to...

It's complicated because we will need to cooperate with all countries, but it's not like we don't have ICAO to work within.

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Does it still work when the power goes out? Is it easy to troubleshoot? Not everything needs to be overly-complicated.
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So my mother worked at a bank when she was in college. This is the 70s. Later in life she went back to work, in the 90s, at a bank. When the computers went down and they had to close the books on paper and she was the only one that knew how to do it.

There is something to be said for knowing how to deal with critical systems when the automation breaks.

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Better in what way? They have avoided replacement specifically because they work extremely well and none of the alternatives have been demonstrably better.
Those things actually work great, not everything has to be modernized for modernization sake... that's how we get cars with touchscreens instead of buttons and knobs.
a mechanical (wood, paper , etc) state machine is very resilient and easy to read even from across the room. No electricity demands, no lighting needed. Contains it's own mutual-exclusion (only one person can modify it at any time).

the digital version would require 10+ endpoints with 1000x points of failure.

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