Memory usage went down drastically and response times got much better.
Additionally, I personally much prefer the syntax of the nginx configuration file (though this really is a matter of taste) and it generally feels like much more of the really cool stuff is built right in (I'm looking at you, memcached module).
As such, I love nginx and I would recommend it to anybody asking me what lightweight web server to use.
Note though that the performance improvements I listed above are not as such specific to nginx: You could probably achieve the same result with any other web server that isn't also your application server. What is specific to nginx is its stability, its nice (for my taste) configuration language and the availability of really interesting modules right in the core.
Congratulations to everybody for reaching 1.0. I'm looking forward to many happy years with your awesome tool in my utility belt.