The cheaper price means that the Pencil doesn't come with some of the more advanced features as the first- and second-generation accessories. The device doesn't support pressure sensitivity, wireless pairing, and charging, or the double-tap feature that lets you switch between tools. However, it still supports hover with M2 models of the iPad Pro.
Apple has been overdue for some iPad updates. It launched the 10th-generation iPad in October 2022, iPad Pros powered by M2 chips that same month, an iPad Air with an M1 chip in March 2022, and the redesigned iPad Mini in September 2021.
Source: The Verge