Neat trick! I spent a few hours last weekend crafting an ipad stylus from foam, salt water, grocery produce bags and the metal spring and barrel from a metal pen (an improvement over version 1, which was a damp Q-tip!). So last week I would have stopped when you wrote "drill" but this week, I was all "Oooh.. neat!"
I have the fancy motion computing pen and if you look closely at the (non-writing) end you'll see there's a hole that you can thread a string through, presumably to wrangle it to your device. I've been contemplating all week exactly what to string through it, since I found I wanted to keep better tabs on it a few times. But, I don't want anything that will get in the way or get caught in anything. I've been contemplating ribon for fun and fashion, or one of those small loops for adding keys to a keychain. Maybe a way to attach a charm (that won't hit or scratch anything). I think that's the extent of "modding" I have in mind for this pen!
But with respect to the original pen - will any solution that essentially holds the pen for you work, or do materials matter? If you got a "pencil extender" and simply inserted the stylus, would that work? IF the pencil extender is too wide (expecting something the thickness of regular pencil), could the edge stylus be wrapped in something along the top (non-writing) side to make it wider? Does it matter what that material is? Tape? String? Fabric? Foam?
Similarly, if you somehow just lobbed off the very tip of the stylus and could insert it into something that had the body of a mechanical pencil (or a drafter's lead holder), using a drill if the original hole weren't big enough, would that work? With the iPad pen, I had to worry about conductivity. Would it be the case here?