A pencil point is a tapering edge, so I'm assuming the author is considering <1mm for "fully capable computer the size of a pencil point" being unreasonable.
Microcontrollers are not a huge amount larger than that any more:
-Cortex-M4f in 1.6x1.6x0.65mm (MAX32660)
-Attiny20UUR in 1.56x1.4mmx0.50mm
Bare dies may be a bit smaller than the above.