Mix with mud and you have a nice adobe. Adobe is resistant to wind, radiation, fire and bullets. Add a little latex binder to the mix and it is also pretty resistant to water.
Shredded paper is a good source of carbonaceous bulk for worm farming. Gives the critters somewhere to crawl. Keeps the mix from getting too wet.
Or you can use it in your composting toilet.
The plastic isn't a problem for composting. It just give the soil bulk. It helps keep it well aerated and prevents packing. Bacteria, fungi and worms just eat around it. Not a problem.