TL;DR: Quest 3 is getting inside-out upper body tracking, allowing it to track your wrists, elbows, shoulders, and torso. It will also receive AI-based leg estimation.
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This is super nice:
Upper body tracking will also let developers anchor thumbstick locomotion to your body direction, not just your head or hands, and you can do things like lean over a ledge and have this show realistically on your avatar.
This is so badly needed, I love Skyrim VR, and Until You Fall, and both have a similar problem of locking travel to the direction. You look.
This is awesome if it tracks well!
I hope it works well enough to be useful with few limitations.