The upgrade is only minor and will fix a few issues that were identified when the 1.80 firmware was released. Eric Lempel the Director for PlayStation Network Operations has stated that the most notable improvement is the RGB full setting. If you're connecting your PlayStation 3 to your TV through a HDMI cable and if your TV supports RGB full range, then the picture quality should be improved. Lempel also states that Sony is "continually evaluating and improving PS2 software compatibility too" so hopefully this means more PlayStation 2 titles will become backwards compatible.
UPDATE: The firmware update is available now and can be downloaded via the PlayStation 3.

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