I've now done the update and tested the new AI noise reduction feature.
When you record with the AI NR turned on, it records to a "mix" file which contains the AI NR processed audio. But it also records, in the same folder, to a separate file which is the unprocessed audio. This is excellent as it means that if the AI processed sound is not good, you can revert to the original. Total insurance. Well done Zoom.
I did three quick tests - one in my 'studio' where the PC puts out a slight amount of fan and disk noise into the room. Then in the bathroom with the extract fan on. Then out on the balcony of my suburban home with a fair bit of traffic going past nearby.
Firstly, when you turn on the AI NR feature, a message appears indicating that the recorder is assessing the current noise level. This tends to mean that it won't deal with significantly fluctuating noise (but I'm not totally sure). Also, I imagine that it will be essential to ensure that you avoid creating handling noise while the noise level assessment is being processed. There is a slight pause before the message appears, and it seem to just take a couple of seconds to undertake the assessment. Then you can hit record.
Doing some analysis with Adobe Audition, it looks like the AI NR function reduces noise by around 12dB. But what does it do to the required sound, in this case speech? Well, in the studio the speech was slightly affected (in terms of sounding 'processed') and in the bathroom, the speech sounded more processed, to the point where it was only just acceptable (but that does rather depend on many factors, eg do you prefer to have the loud sound of the fan, or the processed sounding speech?). In the outdoor test, I guess the same thing applies - is the 12dB reduction in background noise worth the moderately processed sound of the speech?
I think I would probably only use this AI NR feature if I wanted to record narration for something like a YouTube video in my slightly noisy studio. Or even in a relatively silent place where I wanted to reduce mic and preamp noise by 12dB. Otherwise it would be good for situations where it was essential to reduce background noise to the point where a bit of processing of the desired audio was an acceptable option.
Would this new feature have any use in the context of recording music in a taperssection environment? I doubt it.
As for the new level setting feature, I haven't tested it in detail, but I did discover that the way to set the levels is simply to press the forward/back buttons on the recorder, which allow precise changes of the default "70" setting. But once you press record, the levels can't be changed. Useful? Well, maybe handy in some situations.
mp3 settings are 128 / 256 / 320kbps. Useful for some people.
All in all, this update helps position the H2essential as a multi-purpose recording tool with an impressive array of optional features - at a quite reasonable price.