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I did experiment with OG for hand writing - which to be fair isn't what it's designed for. You're right about the smoothing, but if one writes slowly and deliberately it isn't too bad. But I have an iPad 1 and I wonder if a newer model might capture more points on a line while drawing freehand.

I liked the ability to grab a chunk of handwritten text and shrink or move it, something many handwriting apps lack.

The main problem though (common to most "drawing" apps) was the inability to easily create a dot over an I or a full stop. In order to make a mark you must drag, which kind of breaks the flow.

The "Notes Plus" (great features, but crashy last time I stressed it) and "Note Taker HD" (more basic but very stable) apps are the best hand writing maniputation apps I've found but don't have anything like the sophisticated diagramming capabilities of OG.