BR, paper towels are incredibly wasteful. While I don't know the restaurant you are referencing most use towels to wipe away the sanitizer they use, whether premixed or made from bleach and water. Many restaurants will also "store" the towel in a bucket of sanitizer. If they aren't following these steps then yes the towel is going to be nasty.
Quite true.
Beyond that I will only say...
SHAMWOW!