Adventure update, to flesh out the game a bit and make exploration and combat more rewarding. Note that this is "not" Adventure Mode.
New features in the terrain generator; things which will only appear in new worlds/new generated areas.
Shift+Click on items will work correctly.
The Clay bug will be fixed.
Labels for items will be added.
Shears, will be the only way to harvest wool from sheep without hurting them.
* They also destroy wool and leaf blocks faster than by hand
* Using Shears will be a legitimate way to obtain placeable leaf blocks.
TNT will only be activated by redstone or fire, so picking up TNT will be possible.
Wool particle colours fixed.
Multiplayer server list.
* Improved server join screen: The server join screen will feature a list of servers
Pistons.
Sticky Pistons will be included as well. They will be made with slime balls.
Spike blocks, Jeb initially considered Spike Pistons, but then decided to make a Spike block that can be pushed by the Sticky Piston
Player List - Press tab in multiplayer and player list comes up.
New "scary" mob added.
New improved lighting — day/night cycles will not require chunk updates. Lighting will be updated via a texture, whose coordinates are the block's sky light and block light levels.
* Warmer light from torches.
New textures for cobblestone (and moss stone) blocks.
Torches placable on fences.
Experience Orbs
Other secret projects.
Huge Mushrooms.
Use for Slimeballs: Slimeballs have been confirmed to be used in the creation of Sticky Pistons.
Better Redstone Repeaters and Redstone connection.
Redstone circuits not working after time set (x) glitch going to be fixed in SMP.
Underground Ravines.
The most interesting stuff
Adventure update
Shears
New lighting that looks awesome
Pistons, sticky pistons, spikes.
Torches on fences (FINALLY)
Underground ravines.
Pictures and videos
Pistons and torches on fences
Night shots in the new lighting:
Day shot:
Underground ravines:
The images are bigger, open them in a new tab to see the big versions.
Perhaps one of the best parts of pistons is that they can be used to control the flow of water, which is amazing. Also, I wonder if cacti can be pushed by pistons...