Yes, this is the better of the two new backgrounds. I agree with the others that you shouldn't chop her off at the legs! Something like Kelli's edit works well to fix that.
The original is OK, but I'm not too fond of pulling her out of the original background; it just seems a bit unnatural. Of the two edits, I prefer this one over the other. What you did creates some nice bokeh and doesn't try to pull my eye from Tara and Jude.
Here's a quick & dirty example of what I meant though... I just quickly painted in a skirt. I also did a quick liquify on the little bit of hanging tummy.
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