Basically, more accurate colors, deeper blacks, and more outside readability. If you think it's too yellow, take it to the store and ask them to diagnose it. Some have returned theirs to receive new ones with more subtle tints
The second-generation iPod touch and iPhone 3G both have that warmer screen. I noticed the difference as well when I compared them in a store. My first-gen iPhone looks distinctively blue by comparison. I'd like the warmer tint if it weren't for the greater visibility of the "scan lines"
I've owned a 32gb 1g touch - It's screen was gorgeous, cool and super crisp. Everytine I looked at it, it blew me away.
I've owned a 32gb 2g touch - It's screen was a dirty washed out yellow and wasn't crisp at all. It was a severe downer everytime I used it. When I compared it to my 1g side by side....I could have cried.
I now own the iPhone 3g and the screen is exactly the same as my original 1g touch and everytime I look at it......I feel really stoked and happy that it's a crisp display again.
Well, very late to the game. Got my 3G a few days ago and I can notice the yellow-ish of the screen color, esp when I hold it up to my 1st gen. Kinda sick looking. I held it up to all three demos in the AT&T store and they all looked the same (yellow tint). Someone please tell me I'll get used to this?
I just got a Touch 2G, and never noticed any yellow tint. Looks fine to me. I guess if you're used to something, after awhile, it makes changes more noticeable, but as a first time user, I can't see anything out of the ordinary.