Let the hive mind of Engadget get that for you.
"I own an iPhone 3G and I'm looking for a decent speaker / alarm clock for it. I am going to listen music in a mid-sized room, so I want nice quality speakers with solid bass. I also want to use it as an alarm clock, so it would be great if there is such a feature. The price can be low-mid to mid-high range. I was looking at the Klipsch iGroove SXT; it's powerful, slick and the reviews are good, but it doesn't have an alarm clock feature. It's no deal breaker if I can set it up from the iPhone, but I'm not sure. Thanks!"
Much faster CPU, much more RAM, HSDPA, GPS, lots and lots and lots of new software features, much better camera...
And all that in a much smaller and MUCH slimmer device, while retaining old advantages like the huge battery.
So, in which way is this *barely* any improvement?