The new loop cutter uses a different mechanism based entirely on the sender's address to determine how to handle incoming mail, and offers new options on handling said mail. The default configuration is identical in behavior to the prior flood control mechanism; if you are happy with how it behaved, you don't need to change anything, and the newer version will still catch several new kinds of loop for you.
The loop cutter, by default, simply prevents automatic responses to mails sent in clusters, hoping to prevent the remote side from sending a new mail. By default, the loop cutter will prevent an automatic response to any second or further mail sent by a user in a ten minute period. This is a shifting window; if a user sends a mail every five minutes, they won't receive a response to any after the first mail. If you would like to, you may choose also to prevent those repeat mails from being filed as tickets at all (this is off by default.)
Finally, you may write several rules of the form "X mails in Y seconds means no response for Z seconds" - any count of such rules you'd like. This new flexibility won't be needed by everyone, but it is needed by some.
Basically, it's a stronger loop cutter, and you don't have to change anything if you don't want to.