Not to be bested by Photoshop, Illustrator has also been given some pretty cool new features as part of the new CS2 package.

Live Trace
Quickly and accurately convert photos, scans, or other bitmap images to editable and scalable vector paths with the Live Trace feature.

Live Paint
Apply color to any area of your artwork and use overlapping paths to create new shapes with the Live Paint feature, which intuitively colors artwork and automatically detects and corrects gaps.

Control palette
Discover new features and find existing features faster in the context-sensitive Control palette. Accessing selection-based tools from a single location eliminates the need for multiple palettes.

Custom workspaces
Work more efficiently and optimize your screen area using custom workspaces that display only the palettes you need for a specific task. Save, share, or access any workspace at any time or use workspace templates.

Adobe Photoshop layer comp support
Control the visibility of layer comps in linked, embedded, or opened Photoshop® files from within Illustrator CS2.

Adobe Bridge
Use Adobe Bridge to efficiently browse and preview your creative assets, run automation scripts, access Adobe Stock Photos, and more.

Expanded stroke options
Control the position of a stroke on a path by choosing centered, inside, or outside.

Mobile content creation
Optimize rich graphical content for mobile wireless devices by saving artwork in any SVG format, including SVG-t, with improved export options, previewing, and more.

Colorized grayscale
Assign a spot color to a linked, embedded, or opened grayscale image, or even apply a spot color to a drop shadow and be confident that artwork will separate properly when printing.

PDF/X support
Create reliable, press-ready layouts using ISO-standard and ANSI-standard PDF/X.

See screenshots of these new features

See more new features from Illustrator CS2