I am also starting to use the notes facility a lot. Much more than I expected. I am so glad there was nothing out there with the same size screen without the scribble facility.
I remember someone mentioned that there was a good 'proper' pen that could be used with the iliad (wacom cross something?). I am starting to think that one should be on my xmas wishlist. I also remember that it was rather expensive in the UK compared to the US. Even so, if it really is good then I might have to get one.