The direct answer to your question is yes. From the OAuth 2.0 spec:
it is the intention of this specification that new implementations support OAuth 2.0 as specified in this document and that OAuth 1.0 is used only to support existing deployments.
Although I prefer OAuth 2.0, and have implemented a 2.0 authorization server and contributed to the spec, I'm not able to say that one is better than the other. I do believe that 2.0 is easier to work with.
As a useful protocol, OAuth 1.0 is not obsolete or irrelevant. As of version 1.0a (RFC 5849 is 1.0a), I know of no vulnerabilities that make it less secure than 2.0, and in fact it is arguably more secure by default. 1.0 is just as capable of handling most use cases.
OAuth 2.0 is incompatible with OAuth 1.0; it is a completely new protocol. The design decisions that drove development of 2.0 were not rooted in flaws of 1.0, per se, but rather 2.0 was borne out of a desire to make OAuth simpler to implement, and more elegant for use cases that were hard for 1.0 (such as native apps).
Some differences which may be worth noting:
2.0 relies on the security provided by TLS encrypted connections. 1.0 does not require TLS, and as a result the protocol is more complicated because it has to include its own defenses against man-in-the-middle attacks. For example, 1.0 relies on signed requests to access protected resources, whereas 2.0 offers a much simpler Bearer access token type.
2.0 splits the OAuth server into two conceptual roles: (1) authorization server and (2) resource server. This separation of concerns fits naturally with enterprises where authorization concerns are spread across many servers responsible for different types of resources.
2.0 distinguishes between confidential and public clients. Public clients are those that run on user devices, and therefore they cannot reliably keep secrets (hard-coded, embedded credentials). Distinguishing between confidential and public clients makes it easier to make secure implementation decisions that suit the needs of client application developers.
2.0 introduces multiple authorization grant types. Each grant type has its own protocol flow, and these protocol flows make OAuth 2.0 adaptable for multiple use cases and client types.
2.0 makes a great effort to be extensible. Section 8 of the spec makes provisions for defining new access token types, grant types, and protocol parameters. For example, in addition to bearer tokens, work is going into MAC tokens and JWT bearer tokens.
This is subjective, but one might say that OAuth 2.0 tries to be flexible for many use cases, where OAuth 1.0 required developers to fit their use cases into a more rigid framework.