Could you share a little about the difference between the small whiteboard and a letter-sized paper notebook?
What I love about marker boards is the ability to freely draft and modify on the fly without worry. When I want to commit ideas to "storage", paper works best :)
These days, anything short term -> whiteboard, anything refined and meaningful enough for reusing later -> PC.
fwiw I came to a similar solution but it came in the form of a battery powered eraser and a big pad of paper.
erasure is the problem, not marking. a good soft graphite pencil and an electric eraser is my whiteboard ^^