I received the Papilio II 8.5x21, which is now fully multi-coated, and had a chance to use them for the past few days. I should note that I have never seen the first generation model, so I can't compare it to that. However, I can draw other optics that I have either used or own as a reference point - namely, the Zeiss Conquest HD, HT, Swarovski line of binoculars, spotting scopes, and rifle scopes, the Leica HDB binoculars, the Schmidt and Bender PMII line of rifle scopes, Vortex Razor HD binoculars and scopes and a myriad of cheaper hunting optics (Nikon, Pentax, etc).
The unit is compact and lightweight. The build quality is what would be expected for a binocular in it's price range. I doubt I would feel comfortable beating on these.
The binoculars fair well in the day time, but under dim conditions, they suffer.
The contrast, clarity, and colour are excellent for it's price range. I was very pleasantly surprised.
As others have mentioned, where this unit shines is close up. These are amazing for viewing the details on flowers, insects, or anything else for that matter. These have even impressed my friends that only use alpha-level optics.
One of the main drawbacks is that it is not a waterproof or fogproof unit. However, again, at this price range, that can be forgiven.
The biggest drawback to me is that the eye relief is too much for the eyecups. Even with the eyecups fully extended, I can't get a good view and have to brace the binoculars against my eyebrows. If this issue could be solved, I would rate these a 10/10 without hesitation.
I would highly recommend these to anyone that has an interest in looking at anything close-up. They are very unique in this matter. As far as distance viewing, these are average, but there are better choices.