I love it. Love the movies, love the games, love the cover search. As a long time Cover Flow user, I love that it's now integrated. The interface is better, the iPod screen is better. All in all a vast improvement.
Now, if I could ask for one more thing for the next go-round: I subscribe to a lot of podcasts, and its really irritating to keep getting that nagging window that says "You haven't listened to this podcast for a while, so I've stopped updating it, because you clearly don't appreciate all I do for you."
Can we please have the option of living our lives without having to justify our behavior to our computers? Next thing you know they'll get pouty if we don't log in every day.