Yep, it's beautiful illustration of the power of free markets.
There was an attempt that to update it for the kidz of today by replacing the pencil with the iPad.. "I, iPad". But the reason it works so well is because of the simplicity and timelessness of the Pencil.
If you like "I, Pencil" then you will love Henry Hazlitt's "Economics In One Lesson", which should be mandatory reading for all politicians.