As for government paperwork...you could think we're the biggest paper producer in the world, and the government wants to support local industry. You would be wrong though

As for people carrying knives, there are big regional differences here (somehow I assume it's the same in the US). Rural areas of Southern Italy (and Sardinia, of course) are different from the industrial NorthEast...and as wonderful the Dolomiti can be, I really hope you will have the chance to visit other areas of the country...and see more knives around
Fausto