... Sort of. Xbox Live is up, Lumines is available for download, and Xbox.com is dog slow (at least it was early this morning).
Looks like they went a bit long on the upgrade, and at 12:30 PDT they had "a couple of issues that they need to clear up", and by 3 a.m. they were "finishing up some work on Xbox.com and the forums" -- so I'm guessing there are some tailing effects to that effort.
UPDATED: Confirmation of wonkiness from MajorNelson.com.
I imagine there are some tired ops guys out there today.
I haven't seen anything about what the "amazing new features" are. That's a little irritating.
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