New Document Library enhancement in Office 365

For many years I've been frustrated by the fact that on a Document library on SharePoint or Office 365 there was only a New.... Word document option and you had to create content types etc. for other types like Excel, PowerPoint etc.

I just created a brand new Document library in one of my site and low and behold the below new dialog pops up. have no clue how long that's been there and now I am seriously wondering how to enable that behavior  in existing Document Libraries ;-) think some migration will be needed.