I have used the pounce pads with the regular chalk in them, but I use them in the LA and mark as I go. I have never used the ultimate powder that you have to iron to make go away. I understand it only comes in white so you would only be able to use it on a dark colored quilt. Contrary to what the name says, you don't "pounce" the pad, you rub it over the stencil like using a chalkboard eraser.
Really, my favorite marking tool is the blue water soluble pen. It has always washed out for me and leaves a bright easy to see mark on most colors of fabric except really dark darks. For those I use white chalk.