Here it is, the new update! 
As we already talked about, it changes the worldgeneration and introduces the ability to cut grass. Find more information here: Cutting grass and new worldgeneration
Note: Due to the changes in worldgeneration, your current world needs to be converted (of course creating a new world is not affected by this). This happens automatically (you see a notification while loading), but maybe it's required to manually adapt the world at certain places (conversion may lead to flying rocks etc.).
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Changelog:
- [New] Ability to cut grass
- [New] New tool to cut grass, a sickle (can be crafted at the workbench)
- [New] Objectselector is now transparent, to make it easier to distinguish it from placed objects
- [New] Rudimentary ability to fill holes in the terrain, simply right click when holding a stone or clod of earth etc.
- [Changed] New worldgeneration algorithm:
- Caves are more frequent and deeper now
- You're now able to dig holes with higher precision
- World contains sharper features
- World generation is faster now
- Caves are more frequent and deeper now
- [Changed] Blocks no longer influences the terrain
- [Changed] 'Cracks' when hitting a block are now restricted to the block you actually hit
- [Changed] Lightscattering effect has been adjusted a little bit
- [Bugfix] Flickering selectors (see Bugtracker) when placing objects or blocks should be fixed now
- [Bugfix] Audio settings can be changed now correctly
- [Bugfix] Fixed an erroneous sound when placing blocks
