Interesting, paper towels were recommended by the breeder who sold me the frog. They may not hold moisture in an aquarium with a screen top, but they do quite well in a plastic shoe box tub. I live in Florida where humidity isn't usually a problem.
I feed using forceps and change the bedding immediately after. I would agree that this might cause stress, but again, he's eating so well.
Not eating is usually an indicator that your frog is stressed.
I know that coconut fiber is THE best substrate, and obviously I would never try to estivate a frog without it.