Before you could just get a listing of the recent top stories. Now you can flip see the recent top news stories, images, or videos either separately or together. There is even the little news story image, like on Digg. You can see your friends activity. Finally, you can also select specific topics that you want to see.
I think this is a PERFECT example of a Web application letting you take the functionality you enjoy with you. You use Digg in the comfort of an environment that makes sense for you. In this case, it’s iGoogle… and a lot of people use iGoogle.
On a related note: why isn’t Digg blogging about this? Fanboys can only be fanboys if they know what you’re doing.