Bamboo paper is a great app for taking notes or sketching and has to be the most responsive writing app I have come across. Most apps that allow you to do handwriting, make it very difficult to create natural looking text. You can take great looking notes on Bamboo paper using just your finger, but a stylus would be recommended.
The app is currently FREE until the end of June so you have nothing to lose by downloading and giving it a try. The only thing about the app that I don't like is that there doesn't seem to be any option to create new notebooks. It appears that you just keep creating new notes in the same notebook with the ability to add bookmarks if necessary.