Can be found here. Some notables follow. (No, I don't believe XHTML2 is the next cool thing.)
UAs may not add quotation marks by default for quote:
>Visual user agents must not by default add delimiting quotation marks (as was the case for the q element in earlier versions of XHTML). It is the responsibility of the document author to add any required quotation marks, either directly in the text, or via a stylesheet.</quote>
hN is in. Why? section and h elements make much more sense.
User agents are required to find anchors created by empty elements.This means that <a href="..."></a> must be focusable or something.
There's a new di element that lets you group dt/dd elements in a dl. (Maybe I missed this from a previous working draft?)
There's a label element that is used as a label for a list. That's <ul><label>List Label</label>...</ul>
There was some stupidity introduced whereby various attributes including hreftype and hreflang became comma separated lists, making them unselectable by the current CSS selectors. Way to go!
I don't know if this is new, but there's a whole crazy metadata module that lets you assign metadata to elements themselves.