I despise buying things for the purpose of throwing them out, therefore I have several sets of cloth napkins. Washing them is easier and makes more sense and they last a verry long time. Plus, it weirds people out when you hand them linen instead of paper (which I enjoy!).
Tip though: don't buy white or super light colors, they'll stain fast. I have two sets of cotton/linen blend in bright red that I got at Pier 1 that I've been using daily for years (they come in 8 packs for about $10-12, $6-8 on sale).