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I use mine as a notepad all the time-- in classes, meetings, shopping lists, etc. It's been extremely convenient. I don't use handwriting recognition software, though. (I do have a program on the mac that I keep meaning to try, just haven't gotten around to it.) I find the size quite convenient, and my notes are perfectly readable later.
Finding a particular later page is sometimes a nuisance, though, based on the slow screen refresh/paging rate. I'm hoping someone will create a notes browser that displays an array of thumbnails (e.g. 4x4) as I think I could usually recognize the page I want pretty quickly by the general shape of the text. Also, be aware that using the stylus does draw the battery down faster.
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