NEW:
-Thinner
-Square
-Aluminum
-Clip instead of lanyard
-Docked USB instead of strait plug
-Slightly lighter

GOOD:
-Very compact
-Great looking design and button layout
-Excellent sound quality
-Much more durable (and less flimsy, I always felt like I'd break my old shuffle in half if I sat on it)
-No external cap to loose
-Clip is very useful
-iTunes Sync

BAD:
-No battery life improvement (still 12 hours)
-Still no screen
-Clip is a little stiffer than I'd like
-Cheap headphones
-Still no FM tuner, mic, voice record, or line-in
-No accessories for it that aid in your workouts, yet (like the Nano)
-1GB is the largest capacity

BOTTOM LINE: At a price point impossible to ignore, this excellent sounding MP3 player continues Apple's great line of electronics. The perfect starter player or for workout enthusiasts. For those looking for a great compact MP3 player, look no further.