What does “typed-out paralysis” mean exactly?

Solution 1:

To be < verb >-ed out is a idiomatic phrasal verb means to have done something until you are completely spent and can't do it any longer.

You can be played-out, cried-out, practiced-out, etc. In fact this pattern has probably been employed by someone somewhere with just about every action verb a person can do. For example someone who's tired of dancing might announce, "I'm finished, I'm danced-out. I'm going home."

In this case the author is saying the person has typed so much that they can't type anymore- They're typed-out- or rather, some people he sees are more typed-out than others, but they are in some stage of "typed-out"-edness. And because they can't type any more their writing ability has become paralyzed, their thinking is unclear, they can't objectively decide whether they've typed too much or too little.