I have used the Pencil with Notes, Paper, and Procreate. Each application uses the pencil well, with very little lag. Not surprisingly, the built in Apple Notes app makes great use of the Pencil. I have used it for drawing and for note taking. I end up with a mix of typed and hand written notes, and of course it works great for diagrams.
Big thumbs up for hand-writing and note taking.
I'm a doodler at best. I love using the Pencil to draw. Definitely the best stylus I have ever used. I hope to spend more time drawing and painting with the Pencil. Hopefully I'll actually get better at it.