Summary
Thumb-2 core technology is a significant enhancement to the ARM architecture,
which provides performance at higher code densities than previously achievable with
the ARM architecture. In addition, Thumb-2 introduces a number of new features to
further improve program flow, program efficiency and code size. Together these
benefits will enable designers to pack more features into devices while obtaining
improved power and performance characteristics, providing a more complete base
for feature-rich, end-user devices.

^^ quote from Thumb2 pdf.
Hope this clarifies some misconceptions.

/nkirk