I didn't play a lot of POE1 but is that normal? I thought the new league would only have the new content

The Dawn of the Hunt is a content update/"expansion", not a challenge league. Challenge leagues are what provide mechanics that are specific to the league and not available on standard(unless it goes 'core').

ya they said they're not doing a challenge league but all this new content will be available in both "standard" and the new league which is starting unless i heard that wrong

I'm not listening to the stream, but if they're referring to an economy wipe as a 'league', that 'league' and standard would both have access to the expansion. It's only if there is a challenge league do they have gated content.

ahh gotcha.. thanks.. i think its just an economy reset.. do most people still play the new league in that case or are there still people who play "standard"?

Most play with the new economy, just like you’d find with d2 ladder resets