As expected, the update adds over-the-air podcast downloads, and an updated Safari interface. The Maps app got a pretty major upgrade, adding Street View, walking directions, public transit directions, and the ability to get the address of a dropped pin, and share it via email. You can now push the home button from any home screen to go back to the first, so no more mad flicking through all those pages of apps.
Apple also says (we haven't tried it out yet) there are number of fixes, including a decrease in dropped calls, improvements to how Mail handles email, and improved sound quality of voicemail mesages. Apple closed a number of security flaws, and finally, Apple also added the option to disable auto-corrections (in Keyboard Settings), which should make some people smile.
*Sigh* Still no MMS (eh, just send and receive emails) and STILL NO COPY AND PASTE! Come on... the BlackBerry Storm has it!