I take handwritten notes all day on my Tablet PC using Microsoft Onenote. It works flawlessly and part of the reason is because I am using a digitizer pen. It's just like writing with a real pen. I can erase with the back of the pen as well. If I want, my handwriting can be converted to typewritten text easily. That's because Tablet PC's were designed with this functionality in mind. I've also done some inking (handwriting) on an HTC Shift which uses a resistive pen. Both resistive pens and digitizer pens work like real pens. So inking is possible and easy. The downside to resistive screens is that the palm of the hand gets in the way.
Xoom uses a capacitive screen. I just received a capacitive stylus (Griffin) and tried it out. I tried it with two different apps, Note Everything and Genial writing. And I realized that this tablet will never be good for handwritten notes. It's not the apps. Capacitive screens are not good for inking. The pen tip is way too fat, you have to write too slowly and your letters look like a 5 year olds attempts at writing. So even if someone wrote a totally awesome handwriting note taking app, the hardware isn't meant for it.
So I'll have to stick with my Tablet PC with digitizer pen. It's heavy, but works really well for that purpose. I don't think inking was in anyones mind when they designed tablets.

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