If the records are only hard copy, then there is no requirement to convert them into an electronic format just to provide them to an individual.

Correct. Yet over 50% of providers have an EHR. And that number is growing every month.

If you've been practicing since say 1970 or so and haven't converted everything to electronic format by now, why bother?

Because Meaningful Use incentivizes you to do so. The government gives you money.