After taking a look at the update file:
* A full kernel update (with a whole bunch of the modules updated, if not all)
* A whole bunch of patches to system libs
* A whole bunch of patches to parts of the framework
One of the first things I noticed is that they seem to have changed the repeat rate of the 5-way. It's now much faster.
Also, the update process for this one is kinda crazy. Instead of running in the proper update runlevel, it just does a reboot and drop an init script to do the real, proper update smack in the middle of the boot process... And the copy of the patched files to the rootfs is done in a 5 retries loop for each file, the kernel flash is done at the end. That may explain the scary >45s pause right at the last notch of the progress bar

.
On the fonts side of things, we now know for sure that the Kindle 3 is using the FreeType+FontConfig+Pango trio to render fonts

. That explains the enhanced non-latin support (pango)

.