sata and sata 2 are a data transfer and cable design protocol, nothing more nothing less.
sata has a 150MB/s transfer rate and does not have NCQ (performance enhancement feature).
sata2 has a 300MB/s transfer rate and has NCQ.
they are interchangeable, as in a sata2 drive can run at sata1 and a sata2 controller can handle a sata1 drive - at the slower speed in both occasions.
Drive speed is where the only real end-user benefeit is. If the drive itself can transfer data off-platter sustained at over around 120MB/s then sata starts showing its limitations, and sata2 starts becoming an advantage. Under that point, sata is just as good.
Other posters: keep in mind I am speaking of end user benefeit here, something that can change the user experience, not a tiny mathematical change with drive cache transfers et al.