Just went and tried the Pencil in store (displays were set up this time). I own a Cintiq 21UX, Surface Pro 1, and Note 4. I've tested the SP3 and SP4 extensively as well. Here are some (probably TL;DR) thoughts:
-Linearity (slow line wobble) is way better than SP3 or SP4, and is also better than Wacom's Penabled digitizers (lower end digitizers for 3rd party devices, SP1/2, Note series, Yoga Pro, anything that has Wacom and is not a Cintiq). It's not perfect; At extremely low speeds I can barely make out the stair-step pattern, but only because I knew exactly what I'm looking for. In practice I believe that linearity is just slightly below the Cintiq and vastly superior to any of the mobile options. I would call it a non-issue, and I find linearity to be a problem on every version of the SP (Wacom and N-trig).
-General accuracy seemed very good. I can't comment on pixel-perfect, but I was able to write and draw much smaller than I'm used to on my SP1 and the lack of an on-screen floating cursor didn't harm my ability to draw at all, which means there's no issue with parallax or drift.
-Hardware tracking latency is fast, but brush latency varies significantly from app to app. Notes is very responsive and writing/sketching/algebra with its pencil tool feels impressively realistic. Adobe Sketch had a much laggier brush engine which doesn't surprise me because while Photoshop may be industry standard, I don't associate Adobe with efficient software or particularly good brush engines
I really wanted to try Sketchbook and Procreate as I already know they both have fairly responsive brush engines, but they were not installed as others have reported. (Aside: Sketchbook on my Air still seems like it hasn't been updated to use the "proper" brush engine that it runs on Android and Win/OSX, hopefully they'll resolve that quickly).
I would say that the hardware tracking is faster than Wacom's Penabled tech and the SP4 N-trig implementation. I found that you could use the eraser in Notes to get a tracking cursor, and that its latency was lower than the cursor on the Note 4 I brought with me. I feel like it was faster than the Surface Pro 1 (Wacom Penabled), but I didn't bring it to compare. I don't want to comment about the lag vs. Cintiq until I have one at home because the difference in size of the displays can confuse the perception of latency.
OneNote was disappointingly laggy and did not use pressure data from the Pencil. I blame MS for this entirely; Their brush engine is very simple, but it's always been kind of laggy outside the desktop version. Actually even their desktop version on the SP is still not great considering that it only draws simple opaque lines. Some kind of interpolation maybe? It's not needed with the Pencil so if that's the case they should turn it off.
-I invented some random physics problems and solved them in Notes with the pencil tool because this is a situation where latency and feel can make or break the experience. I have to say that I agree with the Anandtech preview: This was by far the best pencil and paper simulation I've ever used. For the first time using a pen on a tablet I felt like I was having a natural writing experience. My handwriting looked surprisingly normal compared to what I get on SP or Note, and for a second my brain was almost tricked into thinking I was using real pencil and paper. The effect is the result of combining very low latency, high precision, and a good pencil software simulation.
I saw the correction algorithm make adjustments a couple times when I was doing math, but it happened so quickly that it was more like... did I see that? I'm not sure.
Summary/TL;DR
When the software is good then the Pencil is the best digitizer pen experience available on a mobile device today by a mile (note that I'm leaving the Cintiq Companion out because no one would buy the current as a general-use tablet PC). The software is very immature and we don't yet know if/when it will improve.
When you compare to the Cintiq it's unclear who comes out on top, but that itself is huge. The fact that I would have to spend time comparing them to come to a conclusion means Apple has done impressive work (Wacom's been at this game for a long time).