One more thing...
* Apparently there is another bug even with the notepad based annotation that makes it very difficult to use: It looks like if you are reading the pdf zoomed in and have panned to say the bottom of the page, now if you want to take a note, the moment you choose notes from the context menu, unfortunately it pans back to the top of the page and doesn't allow panning there after. So its not possible to select the text at the bottom. The only way seems to be to zoom out such that the entire page fits in the screen and the choose notes.... so pretty limiting even with the notes app.
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