7.x-1.4 now includes both the new Normalize.css v2.0.1 (which drops legacy browser support) and the Normalize.css v1.0.1 (which still contains IE 6/7 support.)
Sites upgrading from 7.x-1.3 will continue to use Normalize.css v1.0.1. New sites will default to using Normalize.css v2.0.1. The Normalize module now has a configuration page to allow easy switching between v1.0.1 and v2.0.1.
The Sass/Compass files have been updated to the latest 2.0.1 release as well.