1. The ragdolls are server-side. That means, if you kill combine soldier and his body falls down and hits other combine soldier, it can damage and kill him. Or, for example, a body can block bullets. Or break some crates, covering the debris in blood.
2. Ragdolls have all bullet holes and other decals left on them, including the last "killing" shot bloody decal. Ragdolls can cover in blood when killed with some brutal force involved. However, this is rarely seen if ragdoll is armored.
3. Ragdolls also can make pools of blood on the floor and convulse a little, rarely.
4. Ragdolls now fall much more realistically, depending on damage, hit location, etc.
5. Ragdolls can still grip their weapon, rarely even firing last (stand) burst.
6. The player character gets his ragdoll too, yes. Death is now first-person. Also you can see your legs when you're still alive.