I'd never seen it put that way before, but I think it hits the nail right on the head for me. I do like my 2020 iPad Air when I use it, and the pencil is great; however, I basically end up using it as easy scratch paper or when copy-pastable handwriting is useful. Plus when I need an extra screen to go with my laptop.
It definitely has nice features, but doesn't feel like a compelling use-case overall, yet.