My posts, even in this thread, seem confused about what Caffeine is and isn't. These are confusing times. Though I'm still quite angry to see my quality site outranked by a mashup site, a sub-domain abuser and a "picture search" engine that's got ALL of my images hotlinked from Google cache and outranks me for them I will be fair here.
Google has taken care of crap like that in the past, I'll wait to see if they get it right again, and my traffic has also climbed a little bit since this rolled out by about 9% (though still down quite a bit).
If Google can take care of the spam I like the new changes. If the type of site (mashup, multi-domain, big site with lots of pages who only spams a little) currently ranking much better is what Google wants this is a disaster, webmasters shouldn't have problems outranking sites that are re-displaying their own content.