I have been using inkscape (quite happily I might add) to generate .eps files for use in latex for a couple years now.

Yesterday however something broke. The psfrag package (this is a latex package) can't parse the .eps file generated by the latest version of inkscape. The problem is that the .eps files generated by the new version are not "human readable". This makes the generated .eps files completely useless for latex.

Reverting to an earlier version of inkscape fixed the issue, but I must admit I like the new interface a lot.

see bug #375323 in Inkscape: “ps and eps export with cairo in inkscape no usable with psfrag”