We hatch them by the hundreds here they go straight from the incubator to pine shavings..no paper towels.We have never had one chick with a problem from them and very seldom loose a chick-when you hatch as many as we do you will loose one or two no matter what.
I have also used the pellets with no problems..only thing I didn't like is if they get in the water they become a big mess..the wide pine shavings are easier to get out.But,depending on your set up the pellets are easier to store and easy to use.
My outside brooders do have wire bottoms and when they are tiny I usually cover it just so their little feet don't slip through and intrigue an older chicken or my JRT that may be under the brooder digging around.Once they are a little older they do fine on the wire bottoms.