The most significant improvement here over the first two games is better graphics, better somehow than MGS and other PS1 stuff at the time, simply put; "Now get big booba woman in 3D 😱
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fwiw although the pc version is a pain in the ass to run on anything newer than windows 98, the psx version runs at a reduced resolution and is missing (at least) the star-wars-style text scroll at the beginning (if not other cutscenes, too)
i started re-playing it today. re getting it working on new machines: there is a fix out there made by someone called loma, but that's only an option for the kind of godless heathen who doesn't respect aspect ratio. i'm using dxwnd instead, which after much fiddling now works pretty great.
PSX version also has heavily compressed speech, a lot of missing character animation background animation and camera angles (it did come on one disc instead of the PC version's three, after all) and also has all of the rain overlays removed. on the plus/neutral side, lewton moves more smoothly (great for the framerate queens), and the notepad is completely redrawn to be more legible in low res. it also retains interface elements from DW1+2, which is cute. but yeah. play the PC version instead.