This Apple Pencil hover feature is NOT part of iPadOS 16 and clearly looks like a new screen HARDWARE layer feature that is limited and exclusive to the new 2022 iPad Pro models!
This is all of the same issue/nonsense that every user had when the first generation Apple Pencil appeared on the scene over six years, ago.
When Apple introduced the 1st gen Apple Pencil alongside the 2015/2016 iPad Pros, everyone with an iPad thought the Apple Pencil was made to work with every single iPad model that came before it.
No casual user could grasp the fact that an extra hardware screen layer was added that made the working/function of the Pencil possible on only the iPad Pro models.
I’m tellin’ all of you, this is NOT any type of a software feature of iPadOS 16, but a genuine new piece of screen hardware put into these new iPad Pro models.
I have been through this rodeo, in the past and its more of the same!
This is a iPad Pro hardware improvement! NOT a software one.
I will wait for an iFixit teardown video, on YouTube, of the new 2022 iPad Pro models to be vindicated/validated on this new feature.