A couple of quotes from a press release that went out yesterday.

• Solaris Trusted Extensions for the Solaris 10 OS is the only multi-level OS to support full enterprise-class solutions which gives customers a choice of multi-level desktops through the GNOME-based Java(TM) Desktop System or CDE, multi-level printing, networking and file systems with full binary compatibility for existing applications.
• Labeled Desktop - The ability for the Graphical User Interface (GUI) to enforce and display classifications of data. The GNOME-based Trusted Sun Java Desktop System and CDE will both support this functionality and will allow, for example, someone with the appropriate privileges to see Top Secret data and Secret data, but not accidentally drag-and-drop data from one classification to another.

So this hints at what the JDS enhancements are but if you haven't seen it and haven't used it, its still kinda hard to imagine what a multi-level desktop really is. I think I'm going to have to post some screenshots soon.