I just went through the same thing. I couldn't find any info on the WA site but found this on another site:
What's New in version 2
- Resize image uploads - rescale to max or exact width and height, fit width, or fit height
- Reformat uploaded files to GIF, JPEG or PNG
- Display a progress bar for use with file upload capability
- Specify image quality for JPEG and PNG
I upgraded.