Is this possible? I would like to make the default size for text annotations smaller so they will take up less screen real estate.
While editing the annotations, you can pinch-zoom a text annotation to change its font size.
Maybe I'm not doing this right, but I resized the note and the text size stayed the same. So I need to pinch the text with in the note, not the borders of the note itself, is that correct?
Yes, you can drag the resize button on the note to resize the note, or pinch-zoom the text in the note to change the font size.