Yes, the interface to WordPress “just” changed and very soon it will be changing again. However I personally believe they have done the right thing – the myth of the ease of blogging is gradually becoming a reality. The WordPress team have released a new video (embedded below – click here if you can’t see it) very quickly showing you a fraction of the new features (many of which have been available via plugins for a while) many of which I’m excited about. The new menu feature is worth it alone.
Weblog Tools Collection has further details and a great list of links to answer more of your questions. You can also check here to see if you host can run WordPress 2.7.