Tagging a person inside your picture (L) will allow the operson to find it in the new 'Photo of You' tab
For corporations, this could be a quick way to find thousands of people using their branded product. Since many users of the service like to snap a picture of their meals, let's use McDonalds_USA for example. This is the official Instagram account for the Golden Arches in the states and there will be customers of the fast food giant taking pictures of their Big Mac and fries to share with others. If enough Instagram users tag the food with the McDonalds_USA handle, McDonalds can look at the Photos of You tab and grab thousands of real-life photos of users enjoying a meal at Mickey D's to use as an advertisement. Interesting concept, and since the picture taker needs to tag the photo, there shouldn't be the blow-up that occurred when the app changed its ToS.
Android users got a little extra with the update as picture quality is now improved for phones running Android 4.0 or higher, and the camera now offers grid guides. Instagram users should head over to the Google Play Store or Apple App Store and download the new version of the app.
source: Instagram (1), (2) via AllThingsD