Last month Google Docs introduced drag-and-drop image insertion, now they've rolled out drag-and-drop uploading for all files.
Last night Google Docs updated with two new features. You can now drag and drop files to share them — basic accounts get up to 1GB of storage; you can purchase additional storage here. If you're using Internet Explorer, however, you're out of luck. The feature only works in Chrome, Safari and Firefox.
The Google Docs editor also received a minor but welcome update. You can now compact the toolbar by selecting View -> Compact Controls or pressing CTRL+SHIFT+F. Doing so changes the side of the toolbar from this:
The new features are live for all users; visit your Google Docs account to try them out.
New This Week in Docs: Drag and Drop Upload and Compact Controls [Google Docs Blog]