Just received a 2011 Cap 1 (stretch!) t-shirt and Cap 2 LS crew as a b-day present from my in-laws (thanks Jackie!). Good timing as some of my old ones are developing perma-stink.
I'm very pleased to report that the new sizing is the best yet. Medium used to fit me (38" chest, 5'11", 160lbs) very well. A few years ago it got baggy. My last few outlet purchases have been smalls, which have slightly short sleeves but fit in the torso like the old mediums.
The brand new ones, mediums, fit snug in the chest, and have very long arms, and a nice long torso.
Thanks for getting back to your roots Patagonia!