here are some information about the new ability to cut grass and especially the new worldgeneration algorithm
You can now craft a sickle at the workbench, that enables you to cut grass wherever you want. Currently you completly remove grass when cutting it, the next updates will introduce the ability for grass to regrow.
Grass also automatically disappears when placing a block. It still does not disappear when placing an objects, that's not implemented yet.
The next major improvement is the new worldgeneration algorithm. It allows more sharp features and a more structured texturing. Cavegeneration is also influenced by that, i.e. caves are more frequent and especially deeper now.
Another aspect is the ability to dig holes with a higher precision now. The good thing is, that this helps you when excavating a construction pit. The bad thing is, that holes looks a little bit more "artificial" now.
Tell us what you thing about the new worldgeneration. If you don't like it, discuss it here
Last but not least, a few screenshots.
A construction pit (this we meant with "higher precision when digging"):
Here is the same pit, but with walls. Notice that the walls are flush with the terrain:
Two more screenshots about the flushness:
Finally the result of cutting grass