In this part, they improved the graphics, making it more realistic, added some new spells for all heroes from each faction, and made the plot more interesting and engaging. They added new neutral creatures, removed some, or swapped their positions. The game has become even more interesting. They added the ability to upgrade creatures to level 3 in the castle, but they aren't always better than level 2.
There are many more new features than expected. And finally, they managed to overcome the main weakness of the game – the storyline is now much better.