"We've tried to make this an easy-to-use, seamless experience, with high-quality audio and video. And we've built this product using Internet standards, such as XMPP, RTP, and the newly-standardized H.264/SVC video codec."
To try the new features go to http://mail.google.com/videochat and install the required plug-in (it works in Windows XP/Vista, Intel-based Mac, using IE, Firefox, Chrome, Safari 3+). After restarting the browser, open Gmail, select a contact from the chat section and see if there's an option named "Video & more". If you can't find this option, your friend didn't install the plug-in yet.
Instead of developing new versions of the Google Talk desktop application, Google decided to focus on its most popular communication channel and add the missing features. Too bad that you need to install yet another plug-in...