Personally and from the users standpoint, I very much like the new version. Clear, good looking, easy to use, what more could you ask for?
looking at top stories Digg is still close to it's original version. It's now it's added a twitter like follow function. It's going to take time getting used to the new stuff (in fact I'm not sure it's really needed) but it still has pretty much the same things I was looking for when I use digg. The only thing I miss is the subcategories
I think Digg is not dead still there is opportunity of traffic from there. So far design is concerned, regular visitors will not feel it too much.
Digg is just fine to me still. I have seen a lot of the "power diggers" complain because of the new homepage people are taken too, but from what I can see if you click on "top news" it is pretty much the same. I am just happy you can add your RSS feeds to auto post for you.
Digg sold out the front page to large companies. Notice there are stories on the front page with 20 diggs, while others with 400 don't see the front page. Users notice when you sell out, especially if the site is kept alive by its user base.