Netflix upgraded the Friends feature with several key improvements. Eric writes, "You can now edit/delete old reviews! You can add/delete movies more easily to your custom lists.
You can even upload your own photo, but with a stern Netflix warning:
Images must not contain any obscene or objectionable content, including copyrighted images or images of other people. Failure to abide by these standards may result in your membership cancellation and other legal responses. If the community flags your image or any of your text, nickname or content as objectionable, you will first be given the opportunity to replace or edit said content. If the community flags your contents subsequently, it will be automatically removed and Netflix Customer Service will follow up with appropriate action.
It looks like the default icon for your account is related to one of the genres you like most. It thinks I'm a romance fan because of the recent movies my wife picked out, while my friend is an action/adventure fan."
Here are a few screen captures that highlight the changes:

Changes to the lists tab. Note the different images for each account.

The Profiles tab lets you change your Nickname, image, and set your privacy level.

To access the new features, click on the "Friends" tab, and then click on the purple tab on the right side.
Thanks to Larry, Alan, & Eric (screen captures) for sending this in.