You can now track the positions of the International Space Station and Space Shuttle from within the app, to see if you may be in the vicinity for a visible sighting opportunity of either one. The update also introduces a high-resolution option for images and a sleep mode on/off toggle (so you can keep your device from going into sleep mode while you track launches). Both of these features can be configured in the iPhone's settings for the app.
The Videos and Updates panels get some enhancements, and more detail and content is provided for missions.
Also new is a Launch Schedule entry on the Missions screen to keep you updated on NASA's launches.