One use that really almost swayed me -- or would have, had I known before I left -- was when I was in China for some number of months last year. Touchscreen input + dictionary = WIN for character learning and study! So much better than just drawing with a mouse on nciku.
All of this is, I guess, a long winded way of saying that I am glad that they got around to updating it and if my old Zune 2.0 dies I will probably end up with something like this, bitter as I might be.