I think everyone would agree that Crysis was a power hungry game which demanded the very best in equipment to get a reasonable frame rate on average graphics settings. Warhead while still needing a lot of power does deliver a much better performance even at the highest settings. I played it on "Enthusiast" (which is the equivalent of High DX9 in Crysis) and got a much smoother ride than I ever did in Crysis. Even when explosions were going off all over the place it ran beautifully.
The actual gameplay was in my opinion better than in Crysis. The expanded armoury added just the right amount of variation on the original Crysis combat and tweaked physics engine means that you no longer die when jumping on moving vehicles. Sounds perfect right? Well yes and no. The new physics tweaks also introduced the frustration of being killed by a barral which falls on top of you because you bump into it while crawling around.
The highlight of Warhead was for me not the new weapons or performance increases but the cutscenes and storyline. Crytek really pulled their finger out and created a compelling storyline with some quite emotional moments. The dialog/voice acting was also drasically improved from the original quite plain script to something which feels believable - if you ignore the giant aliens all over the place
Warhead also comes bundled with Crysis Warzone, which is the standalone multiplayer side of the game. I've only played a few hours online and so can't give a detailed account of the differences but after playing a dozen or so rounds of the new gamemode Team Instant Action I must say I'm hooked. Although not very teamwork oriented Team Instant Action is a massive improvement on the very repetitive Instant Action mode and the addition of some vehicle maps for the new mode makes a nice change.
Overall I would deffintaly recommend Crysis Warhead to anyone who is considering buying the game. Priced as an expansion pack rather than a standalone game (which it is) it's a worthwhile buy.