I got this upgrade as well (it is paid for unless you bought your Elgato product after December 1st 2005) and am excited to see this option, and look forward to the version with working IceTV support.
As for an update, it is a much nicer application and handles HDTV streams far better (no jerkiness) on my iMac G5 2.0GHz, where the 1.8.x versions for HDTV were not smooth.
The app itself is better integrated and easier to navigate, and the one click to iPod Video or Roxio Toast is nice, although I wish they would add output to DVR-MS (dreaming!) or any registered Quicktime codec (I have the Flip4Mac WMV Studio codec installed) so I could play it back on my Media Center.
Regards,
Shane.