1) The introduction of SIGMA in the switch from OTRv1 to OTRv2 significantly reduced the "deniability" properties of OTR. The protocol does some explicit things to provide "full" deniability, but in OTRv3 only people who've actually had a conversation with Alice can produce a complete forged transcript with Alice. More details: https://whispersystems.org/blog/simplifying-otr-deniability
2) OTRv3 doesn't work in asynchronous environments. It depends on a reliable and synchronous transport that delivers messages in-order. The messaging landscape is increasingly asynchronous, so OTRv3 is a difficult fit for modern messaging protocols. More details: https://whispersystems.org/blog/asynchronous-security
3) The OTRv3 "ratcheting" protocol is slow. It uses what we refer to as a "three step ratchet," which provides less-than-ideal forward secrecy and "future secrecy" semantics. More details: https://whispersystems.org/blog/advanced-ratcheting
We sought to improve on OTRv3 by addressing these issues in the TextSecure V2 protocol, which we believe builds on the work of OTR to provide enhanced and simplified deniability, an asynchronous-friendly environment, and optimal forward and future secrecy semantics: https://github.com/WhisperSystems/TextSecure/wiki/ProtocolV2
It also now supports group messaging and multi-device messaging, but we'll cover those in a future blog post.