No, you would not be better off in mailing your returns. So, YES, you should definitely file electronically. You should always save your tax documents for at least 7 years in case of an audit. What will most likely happen is that you would receive in the mail a letter from the State Division of Taxation, stating that they noticed a discrepancy in the information provided by you. This could take anywhere from 3 months to 5 years but typically much sooner than later. State confirmations are far less labor intensive than IRS issues of the same type as this. It will all work itself out.
