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You can send these handwritten notes as such to your friends. You can also use the feature of S-note that recognises the handwriting and converts it into proper computer text. If you use Evernote or such other app, you can capture the handwritten note in different ways.
Yet many Note users have not tried this feature at all or have discarded it before trying. Try it and you will fall in love with it.
There is also a tiny stylus attached to the phone, and it is awesome in its use. Though you can write on s-note using your finger tip or a crude writing stick that you can make on your own (see the video given here on YouTube), the stylus given with the phone is much more accurate, stylish and easy to use.
By any chance, if you lose the stylus, you can buy one from Samsung or there are many companies that sell a wide range of styluses.