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A lazy person; a pencil that is still sharp has obviously not been used, and is therefore not doing a lot of work. It also sounds like a compliment, so you can troll people with it.
Why are you here? You really are the sharpest pencil in the pack, aren't you?
the sharpest corner of a large stone (adage) - a proverb referring to the best ability of a person.
When it's about to hit you, and it's too large to escape from, you mainly try to get away from the sharpest corner of a large stone. Similarly, you should only show the greatest talents possessed by you to others—not the dumbest ones.