In addition to many new features in CiviCRM v1.8, we have worked on few improvements for CiviCRM Profile.
1. We have added functionality which allows people to create User Account in Drupal using CiviCRM profile. So this way, user can create customized User Registration pages without using default Drupal User Registration form.
For more details: CRM-1633
2. Another interesting feature for profile is Option to Generate Email Notifications when a profile is created or edited.
For more details: CRM-1941
3. Ability to create "Employer of" Organization relationship using Individual Profile Form.
For more details: CRM-1942