Form - Good! A lot more action than the first one, so a lot more cool sequences to break up the generally straight-forward approach.
F/X - More kicks!
Acting - Most of the actors are "Japanese", which means they all can speak fluent English. It gets a little tedious.
Mise en scene - Japan must be the greenest place on Earth. Sometimes they really need to relax on giving the sets that island feel.
Quotables - Whoever wrote Mr. Miyagi's dialogue should write self-help books.
Cool stuff - Most of the film's over-the-top silly, sort of like the Rocky IV of the Karate Kid series. Unlike Rocky IV, the original actually IS better.