• WYSIWYG editor
• Side-panel features like categories can be moved around to better suit the order you prefer.

WP is also launching a hosted service called WordPress.com for hosted blogging.  You know for such an amazing guy, Matt has to be the most soft-spoken person I know.  It really looks like WP is going to make serious strides with these advances.  I'm thinking a new blog I've just acquired.  I like it.  Sure, I'm probably not going to use the web interface to post (of course), but I am a big advocate of open source and now I think WP is going to have the features that I need and want.

Matt is really doing an awesome job of showing off WP.  Also this is the first public unveiling of the WordPress.com hosted service.  So, I guess I've blogged it first!  W00t!