I got this update earlier today. I only played past the Egg Corridor, but I do intend to play more.
The music is definitely improved. The Cave Story theme sounds natural when it has "bounce" to it. My favorite song in the game, Arthur's House, is even better. Aside from the music, they also fixed at least one of my major nagging points about the game, specifically the XP chips. They're no longer obnoxiously loud when there's a whole bunch of them bouncing around. I'm going to be looking forward to this playthrough.
My only complaint is that the fixed music hasn't been uploaded onto Youtube yet so I can indulge if I feel like it.