I've taken the plunge and applied the new iPod Touch 1.1.4 update to my unhacked 16GB iPod Touch.
The upgrade process was rather uneventful. The software download took 11 minutes and I didn't have to do anything special to apply the 150MB+ update. When the 1.1.3 ROM was released, I also purchased the software update adding Mail, Maps, Weather, Notes, and Stocks. Applying the 1.1.4 update preserved my software and settings. Literally, when the update was done installing, all I needed to do was to disconnect my iPod from my computer and start using it.
As with other reports filtering in from around the Internet, I did not notice any changes in the applications or settings. I was experiencing some crashes when user Safari to read AintItCoolNews.com, AppleInsider.com, and EngadgetMobile.com. After the upgrade, I spent a few minutes surfing those three sites trying to get Safari to crash and I couldn't. Hopefully Safari crashes are a thing of the past.
So now we need to sit and wait. As some have speculated already, this update probably includes the code to support third-party native on the device applications from developers other than Apple. I should caution you that I am guessing here as there is no apparent changes to the OS, GUI, or applications that I was able to detect.
If I discover anything of interest, I will post more about it.