The new app is vector based and has turn by turn directions.
Google refused Apple access to both of those features in the original "Maps" app (in iOS <= 5), but they conveniently included them in their new Google Maps app. :)
Google refused to allow Apple access because Apple was unwilling to allow more Google branding and Latitude support. It was a breakdown in negotiations, not either side being selfish.
This comment is clearly unbiased (and correct), which makes it all the more annoying that your comment (elsewhere in this thread) about Google's early troubles with search in their own app store has been being voted down.
Google refused Apple access to both of those features in the original "Maps" app (in iOS <= 5), but they conveniently included them in their new Google Maps app. :)