It's still got the shitty 240x320 QVGA screen, but it has an <pause for effect> eight megapixel camera and real Xenon flash, the perfect thing for a photo nut like me. It also has:
* GPS & Google maps
* 2GB memory card (Shitty old Sony M2, meh)
* DLNA (I'd never heard of it either, but it looks cool)
* Bluetooth, of course
* 3D video chip, FM radio, MP3 ringtones
* TV-out (yay, finally a phone as good as the one I had 5 years ago in Japan!)
I briefly considered the VGA-resolution Xperia, but although it has a real VGA screen, there's no fucking way I'm buying a nother Windows Mobile device. The piece of shit Asus PDA I had was enough crap for me.