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Locally integrated menus are displayed in the window decorations for unmaximized windows, instead of the default Unity approach which is to display the menu on the top panel. There is one thing that the default Unity menu and LIM have in common: both are displayed on mouse over and there's no option to make the menu permanently visible, at least not yet.

As for maximized windows, the menu continues to be displayed on the top panel when using LIM.

This type of menu was first announced at the beginning of 2012 and was supposed to be added to Ubuntu 12.04 but it was subsequently delayed until now, when this feature finally landed in Ubuntu 14.04 Trusty Tahr, though it's a bit different: instead of a menu button, the menus are displayed directly in the titlebar.

However, according to Marco Trevisan (the developer behind this feature), LIM might become default for Ubuntu 14.04, depending on community feedback:

Some LIM-related settings such as the click movement threshold or the double click wait are not available in System Settings but can be found in Dconf-editor, under com > canonical > unity > integrated-menus.

Besides LIM, another important set of changes landed in Unity, for HiDPI support. Since I can't test this (I don't have a HiDPI monitor), I'm not sure how well HiDPI is currently supported in Unity and if more changes are required for a proper HighDPI experience.

This update should be available to all Ubuntu 14.04 users in a few minutes.