I've heard from the Procreate devs that Apple is actually giving this line to developers: The Pencil is intended for writing and drawing, not UI interaction (paraphrased). Now this was before the 9.3 beta so I'm not saying it's related, but it certainly makes me uneasy.
I'm not in a situation where I NEED the Pencil for UI manipulation, I simply find it preferable quite often because I'll already be holding it and can tap on menus without having to change my grip on the pencil (my other hand is generally holding the iPad). Its use with the UI is a selling point and it would be insane to cut this functionality, especially after it was available for this long since launch.
It's an excellent bit of hardware, but everything about the Pencil launch has been mixed up. The supply constraints, the fact that Apple's only example usage documentation for developers had a major bug with correction handling (and they still haven't really provided the devs enough info on how to utilize the input properly). My iOS development experience consists entirely of making a little testbed paint program after I got the Pencil and this dumb app I've made has better pressure handling than any of the major note/drawing apps out there. Something's gone wrong internally with this project.