Thank you, Jon, for the detailed explanation of the problem we're having. I like your example of trying to render a specific style of font and how the jitter prevents you from doing so. I am not doing illustration and don't need to sell my hand-written work, but I can't stand the jitter I see in my own handwriting; handwriting I've known the character of my whole life.
Thank you, Barb, for pointing us to the AMA. It's heartening that SteveB replied to that question and gave a specific possible solution (increasing pen voltage). I agree with t-work that his answer is frustrating, though; I the cursor dances around the tip of the pen regardless of whether there is a ruler laid on the screen or not.
Unfortunately for me, I bought the SP3 specifically for note-taking. It doesn't seem like the pen voltage fix is coming any time soon, so I have listed it for sale this evening. I will certainly try out the S3 when it arrives, but I'm a bit soured to the product line. I hope the Surface team will give this issue high priority; if it remains unaddressed, I think they'll see many more people complaining in blogs or just selling silently on craigslist.