Most don't put eggs on damp paper towels unless they are doing an assisted hatch, and then, it's to keep the membranes from drying out. You can put damp paper towels in the incubator if you need to quickly raise the humidity.
My personal opinion is that I don't want the chicks/eggs to encounter any dampness other than the humidity in the air in the incubator. The reason being that the moist warm environment is a perfect breeding ground for bacteria. When a chick hatches, he's dragging the raw stump of his umbilical cord around until it dries up. There is also a fair amount of liquid that comes out of each egg as it hatches: albumen, sometimes some blood, and the first poop from the chick. So, the dryer the floor of the bator is, the better. The first chicks to hatch will play hockey with the yet to hatch eggs, so you can imagine how messy things can get if the floor of the bator is wet!
I have a styrofoam home made bator. While I do have some water under the hatching "tray", I use a sponge to keep my humidity up. I'm such a stickler about keeping the floor dry, that I literally screw my sponge to the wall of the bator. Then, I can pour water onto the sponge as needed to keep my humidity up.