* Enhancements to Maps (iPhone Only)
o Google Street View*
o Public transit and walking directions
o Display address of dropped pins
o Share location via email
* Decrease in call setup failures and dropped calls
* Enhancements to Mail
o Resolved isolated issues with scheduled fetching of email
o Improved formatting of wide HTML email
* Podcasts are now available for download in iTunes application
* Improved stability and performance of Safari
* Improved sound quality of Visual Voicemail messages
* Pressing Home button from any Home screen displays the first Home screen
* Preference to turn on/off auto-correction in Keyboard Setting
I've also heard that the iPod Touch 2G speaker volume has been increased a little, you can now record audio through the headphone jack, and safari's layout has been tweaked.
Go ahead and upgrade through iTunes.
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