Worlds are colliding, Jerry!
using the camera in the pen might solve one of the problems with using the ipad with a stylus to date: the UI APIs are set up with a thick thingy (your finger) in mind. This solution might better allow for finer work.
I use styli all the time for note taking apps with handwriting recognition (notes plus) and it is good, but I could see it would work better if there was an API for finer work, or, an alternative approach as described..
No kidding. Modbook was the prototype for what a tablet should be. Can you imagine how great it would be if Apple were to build one from scratch, rather than an after-market rebuild of existing Macbooks?
Pressure sensitivity really is the key. The iPad is virtually useless as a artists tool without that.