This is my own view and only based on my experience of my own Force.
PCSO's haven't replaced Officers. They're in addition. Some are funded directly by Parish Councils.
They're actively embedded in the neighbourhood teams. They're used for a myriad of things that really doesn't require a Warranted Police Officer to do.
Collecting CCTV for lower level volume crime, such as Shoplifting
Collecting Found Property
Speed Awareness Campaigns
Smart Water Role Out
Contacting local Community Groups
Panna Football events (we have our own Kit in my Division which we bought for the Local Kids)
Reassurance to victims of low level crimes (PCSO's will be tasked to revisit them rather than a Police Officer)
ASB Hotspot Patrols
Public Events
They do an awful lot. I know it probably differs from area to area and like Police Officers there are good and bad, but I've not met a poor one that I work with.
They're a good source of information too. They know the local kids and youths, they can identify Offenders from CCTV, they get told things by the Community that wouldn't be told to a Police Officer and guess what? They then tell us
It allows me on the front line to concentrate on what I should be doing, not collecting things etc.
You are right about Police being tied up in paperwork - every so often the Government announce a crackdown on admin, but then it gradually creeps back. That said Paperwork is important. If you want a good successful conviction you want the admin side of things to be watertight. In a lot of cases acquittals aren't due to a lack of evidence, its down to Solicitors and Barristers exposing shoddy paperwork, cutting corners, not adhering to policies and destroying the credibility of Officers in front of the Court and Jury.