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The Recent Apps button gives you easy, quick access to your most recently used applications. I expect Recent Apps will become a very popular destination for most users.
Of course, if you want you can still use the older-style Android all applications interface to get to all your applications in alphabetical order. This will still be handy for those days you need that Navigation program you only use when you’re driving out of town.
I don’t know about you, but with my rotten spelling I’m very happy to see that Android 4 now includes built-in spell-checking.