Making pencils

In the above video a person makes a pencil using paper, glue and what I think is a mechanical pencil lead. It strikes me as an odd thing to craft. One doesn't think a pencil as being hand made in the old days -- like churning butter, or knitting or whatever. Instead pencils seem to be things that were always manufactured. Beside, I wonder how easy it is to break the lead in the paper tubes? Are they even practical?

At any rate, below is a video of pencil making in a factory. Oddly, it seems more natural to me than the above crafting.