The E-PL2 comes with a new kit lens; it's the same f3.5-5.6 14-42mm optics as the old lens, but uses an internal focus mechanism for quieter operation while autofocusing during video shooting.
While the body design and shape is fundamentally the same as the E-PL1, I like the E-PL2's all black a little better than the black with silver of its predecessor.
Olympus changed the large buttons and four-way-navigation keys to smaller buttons and a dial for navigation. It looks a lot nicer and I like the dial, but the buttons may be small for some people. The movie record button is also recessed a bit more, to prevent accidental operation. This newer generation model also supports the more recent version of the accessory connector for an add-on EVF, the new PEN Pal Bluetooth module and the antenna-like macro light.
Though not the smallest of the various ILC options, the E-PL2 is still a good size; it's not so big that its onerous to carry, and not so small that it's onerous to operate.
The grip is shallow, but enough to give you something to hang onto. For this model, Olympus has added a faux-HDR Art Filter and added some variations to existing ones. You can now use the Live Guide for adjusting settings for shooting video as well.