A picture is worth a thousand words, and all that jazz. There's not much to add beyond what you see above.
Facebook does note, however, that the new design lets you see "larger pictures that fill up the page" when you click Photos at the top of Timeline. As you'd expect, the menu allows you to find shots you're tagged in, pictures you've shared, and albums you've created.
Given that this feature is part of Timeline, it of course offers you a way to highlight photos for featuring on your Timeline. To do so, click the star button beside a given photo.
Facebook has been regularly tweaking the look of Photos on its site since the service first launched and this appears a big improvement. Given that there are more than 300 million photos uploaded to Facebook daily, it's about time.