I love cats, and RPG, mixing them sounds really good.
I have never played with Cat yet, because we didn't have any storyteller who knew the system, and some members of my rpg team criticized it harshly. I owned the previous edition too, and I have really wanted to try it (I had a character and his story).
I can't read it with Stanza on my iPod with "unknown format" error (it has problems with the DRM), so I haven't read it from beginning to the end, I just dipped into it on my pc. I know that the files are okay and the quality is good, because I can open them (also the epub with Calibre), and read them, just it isn't comfortable this way.
There was some question with the cat magic points and etc, I saw it is solved in this version (but it is funny, because when you sleep, you are in the dreamworld too)
A member of my rpg team first question was what if there are more than two participant in a fight? F.e. more cat against a bigger enemy (like in a bad horror movie. I think - but I only think and there is no changes in the gamerules - the side with more participants has some advantage - and with it some advantage dice.
I loved the previous edition. The cover art was simple but suggestive. The inside graphic were childish or dreamlike, I liked them, as I liked the curly font.
The new cover art is... well, do you know the Cat - musical? Because that comes into my mind when I see a dark background with two cat eyes. I don't like the big book - little games text art either. It seems hollow to me.
The inside graphics are correct. The pictures are more uniform, that can be a good thing, but it is easier to find a good idea or feeling from the many different style pictures from the previous edition, some with lighter, dreamish mode, some with darker shades. But in the new edition there are only edited photos, and mostly dark and stern picture.
Tl, dr: It became a more professional in design, but I think with this it lost from its playfulness.