Earlier quoted context omitted.
This is a myth, using a pencil in space isn't clever or thrifty, it's a disaster waiting to happen. The graphite from pencils breaks off in small fragments while writing and the fragments can create shorts in electronics and to top it off they're also flammable. None of those are properties you want to bring into a spacecraft.
dumb question but how well do sharpies work in space? the ink diffuses through the felt tip - that doesn't require gravity. wouldn't that work pretty well? also crayons seem like a better bet than pencils - they're still flammable and prone to flaking but at least they're not conductive.
Crayons just aren't dark enough, and are too wide. Accurately reading numbers and symbols written in crayon at a normal handwritten size is not something I want to do. Not to mention the constant sharpening.