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The hover functionality emanates from the specific iPad (M2 iPad Pro) that has this functionality and not the Pencil. It works by detecting where the bluetooth radio is located on the Gen2 or USB-C Pencil and using computation to interact with the screen.

If Apple wanted to leave this feature off of the USB-C Pencil, it would actually add cost to the Pencil as they would need to redesign the device in such a way, so that on the Pencil's end something was preventing the iPad's hover feature from working.
That makes since, then I would think the better solution would be to just replace the Pencil 1 with this Pencil (1.5) with pressure sensitivity, lacking magnetic charing/pairing and keeping the price the same as the pencil 1.
 
Having a choice is a stupid idea? If I hadn’t have bought the most expensive one, I’d have bought this in a heartbeat. Or am I stupid too?

I want apple to create a selection of 22, 24, 27, 32, 42 inch iMacs so I can see in person and figure out which one is best for my mom. also create piano black, space gray, and space black along side the 8 vibrant color options.
also I want a separate tier for gaming iMacs with similar size and color options so I can game at home
then I want apple to create iPad pros of 8 inch, 11 inch, 16 inch, and 20 inches
then I want a new line of iPad gaming tiers that has a fan so I can game all day long without throttling of gaming performance.
oh and I want an option of MacBooks to have magsafe ports on either side so I don't always have to plug the MagSafe port on the left side and I don't want to use up the one usb-c port on the right. this is alongside providing options of 11, 14, 16, 19 inch variants so I can get a feel of what's best. also add a usb-c port on the top of the monitor so I can plugin a proper web cam when zooming.
then I want a new Apple Pencil that has both wireless charging and a usb port built in so apple will have 4 pencils in the lineup. and also I want an Apple Pencil that's thicker so the usb-c port on the top end so I can plug in while using it for work if I run out of battery. 5 pencils !

who cares if apple needs to use up a few hundred engineers and setup more production lines at the cost of economies of scale which in turn makes the product more expensive to me. and who cares if this makes it more confusing for those new to apple products, **** them.

because options!
 
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Do you think that everyone who uses a pencil is doing sketches and illustrations? A lot of people use the pencil for notes, and simple drawings, and for tapping buttons and such. They don’t have a lot of need for pressure sensitivity.

Really this pencil is aimed at the iPad 10th gen that was released with USB-C so it couldn’t work well with the lightning pencil and without the magnetic mount and charging system of the Pencil 2. This gives those buyers of the cheap iPad a pencil to match. One might wish that Apple had done more with that 10th gen iPad to bring it fully into sync with the Pencil 2 but they didn’t and here we are.

The whole iPad line appears to be doing a slow motion migration from one design world to another but the pieces are slow moving and not all in sync. It makes for some odd pairings.
It's perfectly fine to release a "dumb stick", the ridiculous part is the price Apple expects you to pay for it. A tip sensor, USC port, and row of magnets shouldn't cost this much.
 
In my country, the Pencil 2 sells at almost the same price as the Pencil USB-C in the Reseller store. Is that a good deal to get Pencil 2 at this moment?
 
New Apple Pencil is for people on a budget who don’t need pressure sensitivity (like enterprises who use Apple pencils for checklists, forms, POS systems for signatures, etc.) they just need something cheap that works for what they need it to do.

As for charging and pairing magnetically, enterprises don’t need that either. Charge through USB-C overnight and pair with the iPad needed and then use throughout the day.
 
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