Can't say I'm very excited about the Spy's new additions. As a longtime enemy of the Spy, each new thing is just something I'm going to have to deal with. And let me tell you, a watch with nearly limitless invisibility is not something I'm looking forward to. Same with the dead ringer... Let's just say I'll be incredibly paranoid after this update.
The Ambassador sure is a sweet-looking gun, but the Spy's limitation has been that he needs to be up-close to be the most lethal. I hope giving him something that strong and accurate at long ranges doesn't foul things up much.
I main spy and consider myself pretty dang good (as do all players obviously). As such, let me reassure you that the "nearly limitless invisibility" is pretty much worthless. Sure, I haven't tried it out yet, but I currently get "nearly limitless invisibility" by picking up ammo. Having to stand still to regenerate cloak will likely only be usefully for first-time spies as they are generally the ones that somehow still think the spy is a slow, stealth class when in reality, it's one of the more fast-paced run-n-gun classes (at least the way I play).
With ammo regenerating cloak, it promotes the whole dive in, stab a couple targets, cloak, get the hell out, find ammo to stay cloaked, and to be able to stab somebody else right away. If you have to stand still to regenerate, you'd have to stab, cloak, run away, decloak, stand still, wait, wait, wait, wait, cloak, run in and repeat the process. I don't see it being very viable, at least, not without having to sit around doing nothing for way too long.
Sure, this is all speculation since I haven't tried it out yet and nobody knows exactly how it will work, but giving up ammo being able to refill cloak, for standing still refilling cloak just doesn't seem at all usefull.