It usually not only states typed, but also the font size and spacing, plus how many words.
Most people would have the exact opposite opinion than you do about a hand written essay. They are in the business world, and to them it gives the impression you couldn't take the time to sit at a computer and print it out so they could read it easier. Instead, they have to strain through your penmanship to understand what you are writing. Some MOC's can have 150+ applications.
Finally, the military is about following directions, so follow their directions to a tee. Our DS's MOC stated because they had @ 300 applications when they said 500 words they meant it. They would scan the essay into a program and draw a line at 501, so if you were in mid sentence, it ended in mid-sentence. The reason why they did this was three-fold.
1. To see if you can follow directions.
2. To see if you can make your point succinctly
3. They did not have enough time to read 300 applications that droned on.