I don't think toilet paper, tissues, napkins, and paper towels are harmful to the environment at all. What's harmful is the cut down and not replant mentality of companies whose incentives are maximizing profits. These items are all carbon based materials that are harvested, used and put into the ground to store the carbon as the materials decay. Removing matured growth (trees) is a necessary function because mature trees are at the end of their accumulation phase, however, lumber companies clear fields instead of choosing the largest and oldest trees. Trees represent the de facto carbon removal network for our planet. If we think their is too much carbon in our air, we should be growing more and more trees, while finding ways to reduce industrial contribution to carbon output.
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By the way:
Not everywhere it's recycled in the right manner and this creates a lot of concern. Yes, you are right, the major problem is that what is cut is not replanted again. It takes years for a tree to grow and just minutes to make it fall and keep destroying the environment.
Because there is a high demand these industries are flourishing. If these demands cut down, these industries will also have to decrease their production. I feel it's all a cycle