Yes, I have applied all updates.
Here are some examples comparing the Surface Pro 3 writing slowly versus at normal speed, at 100% zoom, and at normal speed at 200% zoom, in OneNote. I also show an Surface Pro 1 writing at normal speed at 90% and 200% zooms.
On the SP3, writing slowly gives the worst results. Writing normally at a normal zoom gives better results, but they are still unacceptable. The strokes in almost every letter are jagged instead of smooth, and some letters have weird distortions (like the squashed 'o' and 'a' in "normally"). At the ends of letters there is often a small tail (e.g., at the top right of the letter 'W', but you can see the same things in quite a few other letters).
On the SP3, writing at 200% zoom gives acceptable results. The strokes are much smoother, and there are no longer tails added to the ends of letters.
However, you can see that the SP1 gives just as good results writing at normal speed, at 90% zoom. I think it is even slightly better than the SP3 at 200% (compare the '@' signs, for example, the SP1 is smoother).
Although writing at 200% zoom gives acceptable results, I can't keep the screen zoomed in to 200% because then the screen shows half as much. That makes the tablet useless for taking notes and also for presentations (I give lectures using OneNote).
It looks like the forum software here has reduced the size of the image; a larger version is available here: http://i.imgur.com/qtriBjd.png