I've read and researched the inital release controller is kind of wonky. I bet this upgrade is what that was about. That and I bet 8GB is same price as 16GB so why not drop a new sku? So I bet they fixed the complaints in that regard, but I do know you can hook up and any bluetooth enabled controllers like the ds3 and they play perfectly the same as far as control/latency.
I really want a Ouya when it gets a TegraK1 or Tegra 5 something more powerful, but even then Ouya has a lot of features, the library continues to grow. It does media programs Youtube/Plex/Netflix etc. every game can be tried out for 1 hour on it. You can also side load apps/emulators and most function extremely well. The 16GB is a nice upgrade especially if the controller has no latency now. Good news imho.
Here's the original for comparision.
