65536 refers to the maximum possible resolution when positioning notes, taking into account the maximum of 256 lines per beat and 256 possible delay column divisions per line.
256 x 256 = 65536 events per beat
or 65536 PPQN in 4/4 timing, since a beat is also a quarter note in this case.
Maximum automation and meta device event resolution is: 256 LPB x 16 TPL = 4096 events per beat.
On a super computer at a resolution that would be painfully hard to work at and without even being able to have a whole bar in one pattern. IE unreasonable extrapolation! Plus Events hints at it being for any type of event, not just Note entry, so again very misleading!
I believe most DAWs run at a default of 960 although have it user configurable. Haven’t looked so closely into it for a while though…
Unfortunately 256 is not dividable by 24 so not sure if using the 256 of the Delay value would throw spanners in the works when it comes to working with MIDI. Seems best to try and use a multiple of 96 on the whole… Although maybe not many people would notice nearest neighbour fit at this resolution anyway.
I tend to agree. It could be made more clear what the figures actually refer to.
There are various ways that you could theoretically work at exactly 96 PPQN with notes and automation, but it does require some interesting value combinations.
A few examples:
6 Lines Per Beat
16 Ticks Per Line
Only use note delays that are multiples of (256 / 16): 0x00, 0x10, 0x20, 0x30, etc.
12 Lines Per Beat
8 Ticks Per Line
Only use note delays that are multiples of (256 / 8): 0x00, 0x20, 0x40, 0x60, etc.
24 Lines Per Beat
4 Ticks Per Line
Only use note delays that are multiples of (256 / 4): 0x00, 0x40, 0x80, 0xC0, etc.
Etc.
You can pretty much work with any common PPQN value if you put your mind to it, but it’s definitely not as easy as changing a single setting somewhere like you might find in other DAWs.
Edit: And yeah, it definitely gets bloody unwieldy when you start working with the higher LPB values, haha. For example, 960 PPQN would be 120 LPB @ 8 TPL or 60 LPB @ 16 TPL, which is completely taking the piss really 
WHOOOOOOOOOOOOOOSH Pattern data whizzing past at insane speed.
you guys don’t make music right? Just debate technicalities 