There are lots of cosmetic changes, including a new iTunes logo which gets rid of the "old fashioned" CD image.
The major addition is a new section called Ping. Steve Jobs describes it as iTunes meets Facebook meets Twitter.
In fact, it's a social networking system based on the music you listen to and download and seems to be a direct Twitter rip-off.
You can follow "friends" on Ping to see what music their listening to or even what concerts they're going to. And, of course, you can follow artists. The network allows you to comment on other people's comments or music choice.
And in case you're wondering, it's safe to upgrade iTunes even if you have a jailbroken phone.
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