The app can detect faces (thought it doesn't sound like it can spot individuals like iPhoto '09 claims), and can organize by whether people are smiling or not, how old the subjects are, colors, landscapes, and that kind of thing. Looks like a typically Sony interface that might be fun, if you make a habit of storing photos on your PS3.
Other updates include support for the new 3.11 version of DiVX encoding and guest access to the PlayStation store. Whoopeee. [PS3 Blog]