News here and here.

Highlights, with commentary:
WYSIWYG template editor - It's a nice feature for those who don't like to muck around in the HTML, but one I won't be using. My template's way too complex to trust to an editor. Though I must say, I really like what they can do with AJAX and websites nowadays.
Access control - you can now specify exactly who can and can't read your blog. Great for those livejournalers/myspacers/xangers who love to put juicy content online and yet hide it from everybody. My mindset is, if it's private, it shouldn't be online in the first place.
Post Labels/Category Tags - ABOUT FREAKING TIME. Finally, categorized posts, no more of this manual template editing like i'm doing currently. This has been THE major feature I have been waiting for blogger to implement. But boy is it going to suck going back through all my posts and categorizing them - but it'll be worth it.
Dynamic pages (No more republishing worries) - this feature i'm kind of on the fence on. Yeah, it'd be nice having each page be loaded dynamically, but i'm worried about the performance hit. The nice thing about a non-dynamic system is that blogger only has to render the page once, but you have to re-render after every change - as opposed to a dynamic system, where the pages are rendered every time they are accessed. Multiply that by every single user browsing a blog page and you have a recipe for performance issues. The one thing that will keep this feature viable is google's deep pockets and server resources. A lesser webserver wouldn't be able to keep up with a lot of hits.

Go and try the beta!