Yep, they're a better side. They've offloaded what were their biggest liabilities in 2005 - Gillespie and Kasprowicz - and replaced them with people like Clark and Lee, the latter who was chomping for a spot for a year before the Ashes. They've also shown that they're prepared to take MacGill seriously as Warnie's shoulder becomes a scientific phenomenon.
The other biggie has been Hussey, turning the Australian weakness in the middle order into a strength. He's consistently the only or among the only batsmen to put a price on their wicket every innings. Why he wasn't picked during the Ashes I'll never know.