It's basically autocomplete, spellcheck and refactoring, just based on a new technical approach. Those are not new or unusual features for a text editor.
On the other - the whole appeal of notepad was that it was a barebones text editor with none of that fluff (aka - it's a text editor, not a word processor or IDE).
MS has a large number of alternatives for the folks who wanted them.
When I opened Notepad - it's explicitly because I don't want the machine trying to tell me what I entered is wrong, or fix it. I just want a big dumb textbox for my file.
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Basically - If you wanted those features you're looking for MS Word or Wordpad.
But MS discontinued Wordpad, and now they seem intent on trying to turn Notepad into Wordpad 2.0.
My prediction is this will not work well, since it directly competes with Office, and is not what the legacy users of notepad want.
But hey... a text editor is an easy place to shove text based AI, and cool shiny new thing of the year means some exec can claim to be shoving novel solutions into prod and bump up AI usage.
I just think people want a nice zen experience in notepad without the buzz of tech and AI swarming them. Kind of like choosing pen and paper instead of opening up Word. If I want a text editor for "all of the above capabilities" it won't be notepad.