Well the WordPress 3.5 update has not been release yet but, the new Media Uploader looks really sweet! You can try it for yourself download the release candidate here. The whole interface has change very much for the better in my opinion, it’s intuitive and the design is a lot slicker than the old clunky upload/insert link above the editor. WordPress.com users can dive straight in as it’s already been rolled out, self hosted users will just have to wait a little longer.
3.5 was due for release yesterday but I guess they are still finalising minor bugs, I’m sure the release is imminent.