The app now supports multi-tasking, and that means you can download ebooks and update your library while doing other things. It also sports a redesigned interface with a nicer feel. The news feed is still there, but it's now a window on the screen (instead of taking up the full screen). The app also now has access to exclusive content and enhanced ebooks in Faces and Places Reading Life. I can't say that I've seen the latter, but I'm sure it's there somewhere.
The app is still crippled by Apple, sadly. Kobo can't in any way link to their website, and that includes the ebookstore, creating an account, or anything. In fact, the link that you might expect for "Forgot your password" doesn't actually go anywhere.
The funny part here is that Apple claimed earlier this year that their new rules were intended to create a better experience for users. Haha.