I think it does look quite a bit simpler to comprehend at least with respect to not slamming too much different stuff in the same sort of grouping.
When I start up IE 8 I get the tab bar which has, in this order: A favorites button with an icon and a label, the set of tabs, some toolbar icons buttons, some of which are menus, some are just actions, some menu labels, and finally another icon menu for help. The new shot looks like they moved most of that into 3 icons on the top right.
Unfortunately they moved the tabs next to the location bar, which means they will now be competing for space, but definitely trimming down and moving where all the menu options are is a plus in my eyes.
They also added the idea of greater emphasis on the back button which is certainly more frequently used, which is nice.