Right now, you can only use it to scribble everywhere, but I understood that with the upcoming firmware it can be used everywhere.
It is perfectly integrated with the notetaking app (naturally) and the Kobo Reader app. You can use the stylus to highlight, for example (and with highlighting, I mean so that the application will notice a highlight and record it in its highlighting menu).
It is a pen with an actual point, so it's really useable for writing (unlike most of those capacitive stylii with those thick points...). The implementation of the pen is also very well done. It has its own menu button (next to the home, menu and back) which will react only to the pen.
I'll be using it mostly for highlighting though. With Aldiko, I can only use it to "scribble", so I'll have to make a bookmark (and use my yellow marker point) to have Aldiko register it.
I didn't buy the Flyer for the pen, but it's a nice addon.
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