It still has the same features (minus a few colors for now) and it adds dueling music, so I think it's a good upgrade. Also the individual lightsabers are different for each character, which I like to see more than a rainbow of colors.
Still has full screen mode if you don't want to see the characters face, hopefully they'll update it with more characters and not just forget about it.
I wish they had volume controls for sound effects and music. When playing the music, you can only really hear clashes, not the other lightsaber sounds.
Yeah, it does seem like a good upgrade. The music is a nice touch and it seems a tad more responsive than PhoneSaber. The only drawbacks are that it takes longer to load and there's an intro page asking if you want to buy The Force Unleashed before you get to the actual working app every time you launch it. But, since the app is still free there's no real reason to complain.