I've always used cloth napkins; I just like them better. And I use cotton kitchen towels from Williams Sonoma. I put up two at a time; one for drying our hands, one for drying the dishes. I still use paper towels, but as little as possible.

Won't your recycler take the cans? We wash out and remove the labels from the canned dog food before throwing them into the recycling bin, though. We do what we can. :-)