Is it possible to put in consitently readable notes with a stylus on an iPad
I have tried a few apps myself. I really liked UPad. They have a free version of the app which has nearly all the features. What I like about it is the zoom function. You have a nice palm rest where you can write in a zoomed in portion of the page. It makes writing even with a cheap stylus easy. You can also zoom on the whole page, which is nice for drawing. 

The app also allows you to import PDF and write on them. I have been using it to annotate all of my classes slides this semester. 

In brief, the palm rest with the zoomed in window makes it easy to write normally. Try the free version, you'll see.