Are you using a 3GS? I find the writing on my 3G to be too laggy for a normal writing speed, so I end up writing at about the same speed as I type in the 'regular' Notes app. I love the attention to detail and thought that has gone into it though.

Just downloaded the lite version. It is easier and more intuitive to use than I initially had thought from watching his YouTube demo.

Nice app. A tad sluggish on my 3G, but definitely usable and readable when writing at almost full speed.