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Yeah. It would likely have been more profitable if the PP could have been used on previous iPads which is why I suspect there was a hardware reason, instead of Apple being nefarious, it couldn’t be used.
Yes. Imagine all of the people with older iPads who might have bought a pencil pro to enhance their existing iPads that they are not ready to upgrade yet.

A cynic would assume that Apple would compromise something to sell to that market too.
 
You forgot the low budget usb-c pencil, which is for the ipad 10 and also works with all but the latest usb-c ipad pros. The ipad 10 has magnets to attach the pencil, but won’t charge it magnetically so the only options for that one are the cheap usb-c pencil or the 1st gen pencil with an adapter.
I didn’t: It’s what I’m referring to in the first paragraph as the low-end pencil model
 
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