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IMO no, but some believe it is. The new one has a bigger sensor which can make the quality better, but for the edits i produce i wont notice a difference. It also has a better camera, but i have never once used the camera feature on my go pro, so that's not worth it. All depends on what your using it for.
I bought the Hero2 because..well, my dog broke the screen and button on my first one. From what I've seen, the Hero2 does a much better job in bright sunlight, where the original one can sometimes over expose it. I'm also happy with the better photos, mostly because I'm going to the Philippines next week and it will be my underwater camera.
but in all, the regular Hero is probably the best option