>> Not as good as pen on paper, but the closest I've ever seen.

Agree 100%. The only catch is that the pen tracking can go a little wonky near the edges. There is, however, a fix: http://forum.xda-developers.com/showthread.php?t=2171198

If you don't need handwriting recognition (I don't personally, but it is nice to have), I've found that Stylus Labs Write to be better than the App Store's version of OneNote (http://www.styluslabs.com/). It seems to have a little less lag than OneNote for note taking also. FWIW, Write is cross platform, and I imagine it would work great on something like a Galaxy Note.

The full version of OneNote, however, is worth the cost of admission. Works fantastic with the Stylus and is way better than the Win8 App store version.