iLounge has a great, in-depth examination of iTunes 7.1 and all of its improvements/changes. Most interesting is the full-screen cover-flow view that offers a bit of Front Row goodness without much overhead. Lock down the keyboard on that and you’ve got a great little jukebox application.
They also added Apple TV support — shipping March 20, it seems, according to the Apple store — and some advanced sorting fields like Album By Artist. For those of you excited about iPod gaming on the Apple TV, sorry. That rumor has been busted.