Honestly, as someone that has the Note 20 Ultra and thinks it is an amazing device, I think that Samsung has little choice and competition has forced it into this decision. I know that some on this forum don't want to admit it as they understandably love their Notes, but the internal pen takes up room that Samsung can't afford to give up anymore. The competition (Apple) does not have to deal with that limitation and this year the competitive landscape has changed. Last year, Samsung had 5G and Apple didn't. Samsung wins. This year, Apple has 5G and it is not having to deal with the space consumed by a pen. Let's not forget-mmWave/UWB 5G consumes lots of space. mmWave/UWB antennas are separate devices and there are multiple in each phone. 5G generates a lot of heat and requires extra heat dissipation. Do you wonder why phones are larger this year? mmWave/UWB 5G. Have you seen the iPhone 12 Pro Max? It is the heaviest phone I have every tried and it does not have a pen inside. Apple can pack it with anything else that they want. The pen forces compromises that Samsung now can't afford to make. So, make the S21 Ultra pen compatible and pack it with goodies that will keep it competitive. There is only so much room inside and the Note 20 Ultra is already huge. Hard to just keep making it bigger. Proof in point. Why does the S20 Ultra have a 5000ma battery and the Note 20 a 4500 ma battery? No more room inside. Something had to give.
If you want to blame someone, blame carriers like Verizon. All of this mmWave/UWB support inside for a 5G feature that most will never see is costing you more for each device and 95% will never see it. mmWave/UWB requires a fiber run to every corner of every block to host a transmitter as it doesn't travel very far or penetrate walls very well. I live in the far Chicago suburbs and I will never see it. Perhaps some in downtown Chicago will, but not me. But I am paying for it with every mmWave/UWB phone I have owned (I am on my 3rd) and in space consumed for a technology that I will never benefit from. That is why the new 5G push for all the US carriers is for low and mid band 5G as the cost to implement mmWave/UWB over large areas is impossible to meet. But your Note 20, S20 (some models), OnePlus 8 5G models, the iPhone 12 series and on and on all carry this essentially useless technology which consumes room that could be used for other things. Enough to keep a pen? I don't know. But I know that every cell phone manufacturer is having to make room by adjusting battery size or reducing cameras included, etc. Apple has one additional benefit as they use the Qualcomm modem, but their own CPU. They can control power usage in ways that Samsung can't as they have to use the Qualcomm CPU chips which have been slow to compete. So Samsung is in a bind. They are not trying to ignore their loyal customers. I think they have run into a wall. Put the pen on the outside of the phone and the landscape becomes more competitive. It has been my opinion, but it is looking more that this is where Samsung is headed. I will keep my Note 20 Ultra. There isn't anything on the horizon that I see coming that entices me. I had, and returned the S20 Ultra. Didn't like it. I think the Note 20 Ultra is an amazing device. If I have to settle with it for a while, I don't think I will suffer.