Earlier quoted context omitted.
Sure but given any length of time, which does tend to be finitely allocated for a test (if for no other reason than the prof or proctor does have other places to be eventually), having to hand write is slower and harder to revise, which means it's harder to get that full, understanding-demonstrating essay, done and polished.
If your test is bottlenecked on the speed it takes to write it, you're testing writing skills. I also challenge that "hand writing is harder to revise"; again, why is the speed it takes to write it at all relevant?
What? Suppose you want to fix the opening of your essay. Best case it's pencil and you can erase some, but worst case you have a longer sentence you want to put in there so you can't do it without scribbling all over and making a mess of the page. Word processors let you edit. How is this controversial?
> why is the speed it takes to write it at all relevant?
Okay, so from first principles:
1. Time is finite, we will all perish
2. Unless you are doing open book, needs to be supervised (proctored / or prof/TA is there)
3. That person is paid for a shift
4. That shift must end
5. Therefore, anything that enables people to write faster is good for the students, who can get more paper written, or the paper better revised, during the finite time available for writing.