“The update is about par for the course, including reliability improvements, but it introduces one interesting new feature apparently borrowed from Time Machine: automatically recycling old backups to conserve space.
Detailed in this Apple support document, Backup 3.2 for MobileMe users will now “recycle” backups (read: delete them to recover space) after a certain time period, depending on the original schedule used to back up that data, as well as the destination.”
Was about time. Still using Arq and Dropbox though.