aye they did BUT on the plus side
the whole interface is faster
now you can "Conference chat" in your party with up to 8 people at once, without the need of all being in the same game
and last but not least, you can install games completly on your hard drive. making the xbox Completly SILENT as you play. it also removes allot of the load times, but, they where never really an issue anyway. ( you still need the CD in the xbox to play them even if installed )
there is also somthing being able to use your netflix subscriptions to dowload games and movies directly to your xbox? i havent checked it out yet, but, it might be a big plus as well.
so all in all, this update is a big plus, since i really only care about functionality, and not look