There are some very good answers here, I just wanted to add a few small points and provide details that became clearer with time.
In-Browser-Reporting: Play 2 reports on errors in Javascript ( Using google s closure compiler) and CSS files in the browser as well and not only Java/Scala files. This is really cool.
Deployment as WAR: Play 2 doesn t still officially support deployment or export as a WAR. A plug-in exists that is supposed to provide such support, but is in beta with some known issues. Complete support of all Play 2 features is not really possible without Servlets 3.1 containers, which will take at least half a year, probably more.
Plug-ins: For now, there are still many more for play 1, if you are depending on some plug in, make sure it exists for play 2 as well.
IDE support: IntelliJ 12 should come with built-in support for play 2. You can already get the EAP ( I ran out of allowed hyper links so you will have to google).
Subjective opinion: I feel as if Play 2 sacrificed some simplicity for support for more advanced features and more complete type-safety. I m not saying Play 2 is hard or not intuitive, just less so than Play 1.
Play 1 was a web framework for web developers by web developers.
Play 2 is a forward looking web framework for web developers by web developers.
So to say, there was a slight shift in focus, ease of use is no longer the primary goal, but one of two primary goals. This is of course only my opinion and I know very little.