In version 2.6.224 you will find:
- You can now see incredible artist art & visualizations when playing music on your LIVE TILE! *Requires Update 1 (OS Version #8.10.14141 & higher)*
- Album art should show up much more reliably in all areas of the app
- For files with embedded album art via ID3 tags V2.3 and below. Quick guide on adding album art is here: http://xboxmusic.uservoice.com/knowledgebase/articles/414573-how-to-embed-album-art-using-windows-media-player?
- All marketplace content
Microsoft also fixed:
- Performance / page loads
- Preventing any unexpected app exits
- Reducing our memory footprint, resulting in less app suspensions & terminations during multi-tasking
- Addressing playlist duplication issues
- Cleaning up Recent Plays interactions
For me the only issue left really is that I would prefer the album art to remain on the Live Tile even when the music is paused, like on WP7, but that of course is just a preference.
The updated version of the app can be found in the Windows Phone Store here.