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Named after trumpeter and vocalist Chet Baker.
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Fixes over 790 bugs.
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Faster; both admin interface and database have improved performance.
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One-click theme installation.
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New CodePress editor for themes and plugins.
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Plugins are no longer divided into active and inactive sections (although are marked as such)
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Widgets are easier to use
Widget editing on the fly
Drag and drop widgets between sidebars; edit all sidebars simultaneously
De-activate widget but save settings.
The full list of features and fixes in 2.8, including developer features and a new Widgets API: http://codex.wordpress.org/Version_2.8