The first difference is that Google can monitor your email, whereas they couldn't before. Google will also remove all irrelevant adds from your screen since they could monitor your searches. Finally they will allow you to tweak your privacy settings.
http://mashable.com/2012/01/25/google-privacy-update/
Personally, I would rather Google stay the same, because I would like to be able to use Google without being watched in everything I do.
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