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We were fans of the first version of Simplify Media’s iPhone client, which allows you to stream music from your computers or those of your friends to your iPhone or iPod touch, so we welcome with open arms (and ears) the news that Simplify Media on Wednesday released Simplify Music 2.0 (iTunes link).

Simplify Music 2.0 adds a few new features to the mix. Users can now search for artists, albums, and song titles across their entire shared music library–the results will show up no matter which machine the track is on (presuming, of course, they’re all running the free desktop client). In addition, you can also tag favorite songs either from your own library or your friends’, create playlists in the application while you’re on the go, and use the new scrub bar to easily jump around inside podcasts and audio books.

While 2.0 won’t fix some of the limitations of the application (the iPhone still doesn’t support background processes, so you won’t be able to listen while you’re doing other things on your device), other outside factors have changed in the interim: for example, since Apple has gotten rid of DRM-encoded tracks, you can now stream pretty much anything you buy from the iTunes Store.

The only downside I can see is that Simplify Music 2.0 will require an additional expenditure from owners of the original version: it’s on sale for $3 until May 14, when the price goes up to the $6. The 1.0 version of the app, now rebranded “Simplify,” is still available, and currently costs $4.