YES...beer changes in the keg. The conditioning process can be a huge difference in flavor and mouthfeel, or very subtle, depending on the style. Generally, high gravity beer likes to condition longer. Imperial Stouts, Barleywines, Tripels and such tend to need long periods of conditioning for all of the flavors to "get to know each other". Barleywine can often have a very sharp flavor when first entering the keg and then mellow out very nicely within a year or so.
Most beers start out with a bit of a "green" flavor and begin to taste nice in a few days. The average pale ale, IPA or brown ale will usually be at it's optimum in ten days to a few weeks. Hefeweizens I like right when they are kegged or maybe a day or two later (others my differ, that's just my opinion).
Most of my beers are half way gone by the time they condition. It seems like the next to the last beer out of the keg always tastes the best!!
The first thing to slide into the background as a beer conditions is the hop flavor/aroma. The longer a beer sits in a keg, likely the less hop flavor it will have (unless it's dry hopped in the keg). I had one beer a few years back that was undrinkable upon kegging. It simply had too much hops and too much of a grassy flavor. It took over a year of tasting every few months but finally became one of my favorites. Don't ever "off" anything until it's been given a long time to condition. Don't get me wrong, I'm not talking about bacterial infections here, just slightly off-flavors.
Hope this helps.
-Kev