The full changelog is as follows:
* Added German and Portuguese languages
* Added the auto-space suppression short-cut gesture: Swype from the spacebar to backspace
* Added the quick language switch short-cut gesture: Swype from the Swype Key to the Q key
* Improved the word prediction algorithm to provide better support for additional languages
* Improved handling of several gesture collisions, including want/wasn't, to/too and others
* The Android IME no longer sometimes hangs/crashes when Swype scrapes the user's address book for dictionary entries
* Tips and help menus now accessible when a password field is active
* Backspace now works in applications which use raw key input instead of an editable text field (e.g. terminal emulator)
* The single character "i" is no longer incorrectly auto-capitalized in non-English languages (reported by many of you!)
* Tons of other minor bug-fixes, including many device-specific issues
Thanks for that. Just updated via the beta page.
It looks like they updated the keyboard's looks (again). And they added a "Show complete trace" option, which leaves the trace on-screen for the last word Swyped (unless I missed it from a previous version).

