Americans dont use the term "pencil crayons"??? What do you call them?
In a feeble attempt to rationalize the Canadianism "pencil crayon"... Pencils have cores based on graphite or charcoal. Pencil crayons have cores based on wax or oil, with pigments added. This is basically the composition of crayons or pastels. Then it's wrapped in wood like a pencil. Thus ... "pencil crayon".
I've never heard Pencil Crayon, in British Columbia, but then again I did live in the U.S. for all of my school years.