Official Gmail Blog: Four changes to Gmail contacts
1.contacts search:- Now contact search has been made more effective in its search even searches like phone number, email address, notes
2. Option to remove people from my contact list . Also it was introduced earlier to add people from suggested list to my contact list
3.Merge contacts of same person like one contact is having phone number, other contact of same person having email address.
4. Now instead of suggested contacts you can see a group called all contacts