This will be the post for my entry in the competition. I will announce now what my ideas are on the new cards so that I don't really risk being ninja'd of some of my ideas...
First point: the art. The most important and identifying trait for the whole card. The more space the card art has, the faster you can identify it.
Second point: the text. More space for the text is needed, as the textbox is cramped up already. These two traits are in a strong opposition, and combining both is the most difficult thing for this redesign competition. There are some solutions, though.
Third point: the upgraded form is noticeable because of a change in the card background. The change is definitely significant, and although it is just a little recolouring, it is surely more noticeable than now.
Fourth point: now we move to the more trivial things. The type of card (creature, permanent, spell, weapon and shield - yes those too deserve to be a type on their own, as they have different rules from other permanents) is written on the card itself.
Fifth point: a small bar on the low side of the card adds both copyright and Card Code - a small addition but I think it would be a cool one. Most of the time it won't be even noticed, as the height of the bar will probably be 15-20 pixels, but if needed, the card code is on the card itself. It doesn't take up space, and it's there for reference.
Sixth point: a small credit to the artist is added to the image.
Seventh point: the card's element is identified by the mark on the background, as opposed to the card cost icon. This clarifies some cards - like Animate Weapon - that are sometimes view as "other". By newcomers? Sure. Would this clarify it for them? Probably.
EDIT: eighth point: a significant one, to be sure. Weapon damage and Shield damage reduction are written on the card the same way as creature atk/hp are, and in the same place. That is to make more room for text on the card (especially shields) and to clean up a bit the whole card. The mechanics are exactly the same for all damage reduction and all weapon damage, and whenever there are discrepancies, they would be exceptions and therefore specified onto the textbox. Which has even more text than before, so there you go.
Please note that Permafrost Shield and Trident text have been altered (Permafrost consistently) due to the new number and text synthetizing most of the informations. I feel that Permafrost's new text would be both more clear and consistent and more similar to Thorn Carapace's.