The main benefits I notice when I have students reply via discussion board rather than just hand in a paper copy are 1.) Students tend to do the work earlier and are not scrambling to get it done right before class time, and 2.) Students seem to take the work more seriously and write better in general when they know that fellow classmates are able to read what they are writing. In my American Lit. classes I've had students submit via the online discussion board and via typed paper copies, and by far, I've had more responses and BETTER responses when they post to the board.
I think it is a great idea, we can get assignments made by the students, we can have another way to grade them, etc.