Dashboard isn't too small. I also have a 12" Powerbook (in addition to my iMac). Dashboard looks fine. It's nice to just hit F12 and have all the Widgets appear. Right now, I have Widgets for weather (3 different places), address book, a phone directory/yellow page directory, Yahoo! traffic, package tracker (FedEx, UPS, and DHL), and a conversion wizard. There are many, many others available though.
Spotlight is impressive, to say the least. It's amazing to start typing your search word and have results start appearing instantaneously and adjusted as you type. If you start typing "jobsfan," you will get everything containing "jobs" until you hit the "f," then it starts narrowing it down further. So the search is in real-time. Spotlight searches within documents -- Word documents, Excel spreadsheets, PDF documents, mail messages received and sent, comments in your pictures, who authored documents, pictures, etc.
iDisk is now more accessible. If you have a .Mac account, your iDisk appears on your desktop and syncs automatically. Very useful for when you're on the road. You can now access your iDisk in Windows XP with an additional download to your XP machine.
iChat now supports multiple video and audio chats. I've had 3- and 4-way audio chats, but so far my videochats have been hit or miss. I've had a couple videochats, but for the most part there is a bug in iChat that prevents accurate detection of bandwidth. For this reason, iChat has been a problem for many people who normally videochat with their iSight cameras. If you are dependent on videochatting, then do not upgrade until Apple corrects the problem.
Mail has a new interface and more features. Some people don't like it because it deviates from the standard interface that Macs have. I love the new Mail. The new layout seems more like Microsoft Outlook.
Most important of all...
Tiger is much, much faster! I love how Microsoft always says that their latest Windows version is faster, but in reality, when you install it, it's slower than the previous system. Tiger isn't like that. It truly is faster. My computer startup times are a third of what they were before. I think Tiger better addresses the 64-bit G5 chips and better addresses memory allocation. Even my Powerbook (G4) is faster.
Visit
http://www.apple.com/macosx/ to find out more new features.
(I should be getting reimbursed by Apple for this, but I'm not. I really do love Tiger. It's far superior than any Windows product I've ever used.)