In games, not so much, though it will support Shader Model 4.0, DX10 and OpenGL2.0 with driver refreshes next year.
In video, you gain some VC-1 High Profile acceleration (motion compensation and in-loop filter-- G965 only accelerated lower profiles of VC-1/WMV9). That said, IMO the major advantage of G35 over G965 is that motherboard vendors are designing HDMI boards around it-- which they didn't do with G965.
I do not speak officially in any sense for
Intel Corp., Technology Manufacturing Group
but I do work there.