Yes. LTE, Better camera, better CPU/GPU, Thinner, Lighter, Larger screen, Better battery (yet to be seen).
I purchased an iPhone 5 32gig, cost just over $600 ($299 + $250 + $50 in taxes, yes sucks to live in Kansas haha) I would pay the $299 to upgrade no problem, the rest will be easily made up for when I sell my 4S 16gig. If they would have let me I would have paid full price to not be on contract, but yes, the iPhone 5 imo is the best iPhone yet. 4S was incremental bump, as is adding the technology they have in the 5 with custom CPU's, the change to the glass and digitizer, adding LTE and iOS 6 is going to be a very nice upgrade.
Let's face facts, anything done with smartphones is incremental at this point. They are going to be faster, better battery life (hopefully) change the screen size and tweak/upgrade the OS. Sure Apple puts on a show about how it's a huge revolution etc... and the haters downplay the engineering of it. If you want some wow factor find someone with the Driod Razr, that phone is crazy thin imo. Well it's also 8.6mm vs the iPhone 5 is now 7.6mm and packs what could be the fastest hardware in a smartphone to date. Pretty impressive imo.