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The most significant change I guess are its use of groups. There also appear to be a fair number of work arounds cleared up from XSLT 1.0
It's still not clear to me when it's expected to become full recommendation.. I expect then more people will commit to it.
There is some debate iver the relationship of XSLT 2.0 with XPath 2.0 and XQuery 1.0, which are waiting in the wings. It was also announced recently that .Net 2.0 will support only XQuery 1.0.
Given all that, we see no need to rush to convert from XSLT 1.0 to Anything 2.0.