Some cool new things:
--> folder / livemark / special icons
--> domain icons - bookmark http://google.com,
set an icon and it will show on all google sites (unless you get to another page already in your bookmarks or history). Looks for a subdomain bookmark icon first (e.g. maps.google.com), then top level domain (e.g. google.com).
--> multiple bookmark icons handled through "Organize Bookmarks" dialog. Not optimized very well.
--> url textbox for the icon instead of three buttons - see options to set this interface
--> menu when you click the favicon in properties
--> star in the awesomebar too
Gotta uninstall Favicon Picker first. There are bugs, so backup your bookmarks.