Here is a quick run down of what's new in the 1.1 update to Photoshop Touch for Android:
Export to PNG and PSD functionality
When choosing Save to Camera Roll or Share by E-mail, you can now save to either JPEG, PSD, or PNG.
Improved image quality of images saved to the local Camera Roll/Gallery
Save to Camera Roll saves out JPEGs which are compressed with max quality now instead of medium quality.
Improved compatibility with Android 4.0
This update addresses some issues related to Android 4.0 (Ice Cream Sandwich) compatibility; including resolving the in-app log-in issues with the Adobe Creative Cloud website.
General bug fixes and performance enhancements
Several performance and memory handling improvements (including Pinch & Zoom and Refine Edge).
Back button improvements
Standard Android Back button is accessible when it wasn't previously. This button supports returning prior to screens and can be used for easier folder navigation.