So I was a few days late to the parade, but I did end up getting the Xbox 360 update (New Xbox Experience, or NXE). I got it like 3 days after it's launch of November 19th. It downloaded pretty fast, installed quickly, and the changes that it brings are pretty cool.
One of the more popular changes, (if my friends list is any indication), is the ability to stream Netflix in HD. For the past week or two, at least half of my friends status' have said "(friend name) is playing Netflix - Watching a movie", when normally you'd see a game name there and what level they were on or some other interesting information. I personally do not have a netflix account, nor do I really want one since I don't watch many movies or TV for that matter. But I can certainly see why some people find this to be a good ability for their console to have.
The interface itself has completely gotten a facelift. What was once a clunky bunch of blades is now much more graphically pleasing and functional. You can also visit the market place now via Xbox.com and queue downloadable content up for the next time you turn on your system and connect to the net. I've found that pretty useful.
Searching for downloadable content in general in MarketPlace is much easier, now that you can sort things by genre, alphabetically by title, and many other ways.
It's actually pretty crazy to think about how much more functional the whole system is now from a dashboard standpoint. Some things that I really didn't think bothered me with the old system seem pretty clunky compared to how you do them with the NXE.
Of course, there's also the "avatars" now. If you've ever created a "Mii" on the Wii, then you have a pretty good starting idea of what to expect. Take that idea, and then add a bunch more customization options and you'll be closer to understanding what you can do with it. The pictures I have posted here are what my Avatar currently looks like.
I don't have a Wii, but I have created a Mii while I was over at a friends house. I was able to get my Avatar to more closely resemble what I actually look like as compared to the more primitive Mii's. Of course, this doesn't really affect whether or not I have fun playing games on the system, but I just mean to compare to the similiar features of the two systems.
Anyway, I've had a 360 since launch and have been enjoying it ever since. Now, with the NXE, it's a drastic enough facelift that I almost feel like I have a new console completely. One that I can still play my 30+ Xbox 360 games on.
If you've got a 360, and have seen the before and after, chime in and let me know what you think about it..