Analyzing Google's code revealed a lot of interesting features.
"For example, Google Profiles will add an option that will allow Google to recognize your face in other people's photos."
"Picasa Web's name tags can become global: a new section from your profile titled "photos of you" will list the photos from other people where you're tagged. Google provides an approval mechanism, so you can reject some of the photos. "When a tag is approved, it's linked to your profile, and the photo is added to the 'Photos of you' section."," as discovered by Florian.
Google Profiles will include a new tab for videos, a photo editing feature, you'll be able to group your friends in "circles", chat from Google Profiles and add gadgets. There's also a "camera sync" feature that could automatically upload the photos from the "camera" album of a mobile phone or tablet.
As expected, Google Profiles is the place where Google's social efforts are most visible. Buzz will be a back-end service for activity streams and not a standalone service. Google Profiles could eventually replace iGoogle, since it'll add support for gadgets and it'll include the most interesting items shared by the people you're following.
[Thanks, Florian, Alex]