The iTunes Music Store is now, simply, the iTunes Store. While removing ‘Music’ from the title certainly helps move the store’s branding into the multi-media monster it has become, it sounds like they’re stuck with the ‘iTunes’ (music related) branding
Album & Cover Flow views – you can now view your library by album art covers, or use a snazzy 3D ‘cover flow’ (you mean, like CoverFlow?) to really show off
New Source organization – each media type gets its own library and source, offering much easier access and organization
Gapless playback – MP3, AAC and Apple Lossless files that are one cohesive album can now sound like one
640 x 480 video resolution for TV and – as everyone predicted – movie downloads from the likes of Disney, Pixar, Touchstone, Miramax. Movies adopt the same usage rights as TV shows (i.e. – no burning)
Integrated iPod management – you can adjust what media is synced to your iPod from within iTunes, instead of having to clunk around in the preferences. We haven’t seen what this looks like yet, but it sounds like a much better idea for obvious reasons
Transfer purchases via iPod – now when Engadget and MacRumors reported this, it sounded like the entire library was transferable between registered computers. This feature, taken from the actual keynote slide, makes it sound like this will work only for iTS purchases
Download manager – begin listening to and watching your media while it finishes downloading