I guess the main reason for this update was to add Kinect integration. Also the audio codec for chat is supposed to be better, but I haven't used it yet.
I'm pretty disappointed though. The new dashboard uses the same basic layout as the "NXE" one, but everything is more flat and boring looking. Also, lots of white. I still hate that the dashboard is like 90% advertisements. It's layout looks like this (brackets [] mean one panel):
My Xbox: [game disc][profile][game library][video library][music library][picture library][media center][family settings][system settings]
Spotlight: [ad][ad][ad][ad][ad][ad][ad][ad][ad][ad]
My Community: [ad][ad][ad][facebook][halo waypoint][twitter][ad][ad]
Inside Xbox: [ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad]
My Friends: can only see 2 on screen at one. I feel sorry for people with lots of friends.
Music Marketplace: [zune][last.fm][music games and store][ad][ad][ad][ad][ad][music library]
Video Marketplace: [zune][espn][netflix][ad][ad][ad][ad][ad][video library]
Game Marketplace: [game content][ad][ad][ad][ad][ad][ad][ad][ad][ad][ad][game library]
72 total panels
50 are advertisements
22 are useful
3 are duplicates (music, video, and games libraries show up twice each)
What should it be instead?
-move all marketplaces into one heading titled "Marketplace"
-merge "family settings" into "system settings"
-merge "video library", "music library", "picture library", and "media center" into one "Media" or "My Media" panel
-shift "Game Library" to the left of "Profile", because honestly, you're going to go there more often than you're going to edit your profile
Final result:
My Xbox: [Game Disc][Game Library][Profile][My Media][System Settings]
Marketplace: [Game Marketplace][Video Marketplace][Music Marketplace]
Friends: list friends in a manner that you can see at least 8-10 on screen at once
8 panels
0 are advertisements
8 are useful
0 are duplicates