Google Analytics does offer some interesting things that you can do with it with relative ease although in comparison to fee based tools, there certainly were (and continue to be) some areas for improvement.
A couple of the key areas where Google Analytics lacked were in being able to provide a sophisticated custom reporting option as well providing the ability to drill down deeper based on various site segments. The tool now provides users with the ability to gain deeper context into the data which will provide valuable insights and ultimately more actionable results.
Custom Reporting
Advanced Segmentation
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Visit Avinash Kaushik's Occam's Razor for an in-depth review of the step by step process.
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