This update includes more features than the digit change from 1.1.1 to 1.2 would suggest. Apart from the support for Spotlight, which I highly rate, and the improved text engine, it is the possibility to hide or show the browser and preview section, or notes/control section, which are immensely valuable. Even on an iMac 17" screen that can be helpful,let alone on my 12' iBook.
The update is free for registered users.
One thing I would like (there is always something someone wants) is the possibility to hide or show the control separately from the notes section.
To focus entirely on writing, this is my tool of choice in combination with LaTeX (in the humanities). In that combo, it has a nifty feature for footnotes as well. Footnote support for rtf etc. would be welcome.