In Mac OS X Lion, there is no icon of "Applications" on the Dock. Launchpad replaced it. Launchpad looks exactly like the springboard on iPad. You can make 4 fingers pinch to activate it. Launchpad supports pages and folders. You can drag an icon to rearrange it and drag it out of current page to create a new page. I tried clicking an icon and holding for a while, but did not see icons shaking.
However, Launchpad on an external big monitor is not beautiful. The icons are too big. It is not comfortable to see so many big icons on the big monitor.
The users who are using 3-button mouse will have a problem. They cannot switch pages of Launchpad. I think it is a bug.
The dock does not show indicator lights for the running applications by default. You can enable it in System Preferences.