Re-worked the character skill pane arrangements to allow finer distribution of skills without being arranged in the classic 'tree' style. Passive skills are separated and unlock for investment much earlier.
Skills now get additional bonuses at ranks 5, 10 and 15 to reward increased investments.
Lots of individual skill tweaks and balances.
Torchlight I (Diablo 2 style) function-key skill binds are implemented
Skills can now be 'queued' and will execute when the previous attack or skill completes
Ping meter next to each party portrait so you can identify players with latency issues
Loads of bug fixes
Respec is now available throughout the game, and will allow you to respec any of the last three points spent for gold.
Fullscreen Windowed mode added
Additional connectivity fixes
Enchantment effects are now identifiable separate from standard effects in tooltips
Sorting button for player inventories
Merchant inventories are sorted by default
Map opacity now adjustable
Skill sets now swap with weaponsets
Tentative functionality for 'sniffing' cheaters so that you can block them.
Continued work on the finalizing the other acts
Improved some lackluster unique items identified by beta testers.
Increased the amount of health and mana 'stealing' weapons.
Improved the rollover information on equipment to provide more and clearer information.

Surely Runic is benefiting from D3 fiasco but it was never their intention to compete with D3.