WebMatrix 2 is a free web development tool that allows users to create sites quickly using ASP.NET, Razor, PHP, or HTML5. It includes features like code completion, database management tools, and site deployment. New features in WebMatrix 2 Beta include improved site creation, coding tools like color pickers and documentation links, enhanced database functionality, site optimization tools, and extensibility through extensions and NuGet packages. The presentation also demonstrates how WebMatrix can be used with PHP and HTML5 and how to migrate PHP applications from Linux to Windows.