I've been playing with the 1.1 update for a few days now, and I think that the way Terraria has tried to preserve the original game by putting most of the new content after the Wall Of Flesh fight is pretty smart.
I've noticed a few bugs (mostly with the new lighting) and I like the new items. Does anyone reading this have a new favorite weapon? I like the Hamdrax (Every tool in one), the GPS (Ultimate navigation) and the Star Cannon (Woo, Very fast speed returns!).