Made Zombies & Skeletons stronger, scaled to difficulty.
Burning Zombies set players on fire.
Skeletons shoot players one block away.
Skeletons shoot faster on Hard difficulty.
Added a new Dropper block.
Works much like a dispenser, but it doesn't use items, it only drops them.
Also works like a Hopper, but it needs redstone to make it travel and it needs a storage block directly in front of it.
Added a Minecart with Hopper item.
Added some new chat options (In multiplayer menu).
Moved Texture Pack option from main menu to the Options.
Texture Pack can now be changed while in a game.
At least 19 bugs squished.
The next block I would like to see is a pipe that can be used to connect hoppers, it would basically act like a hopper without the storage space and would only be able to transfer items to and from hoppers (and other pipes).
The crafting recipe would contain only iron and no chest.
Gotta say, the dropper seems lazy. It's basically the least useful functions of the hopper and dispenser combined. I thought the idea to put a chest in front of a dispenser in order to store ammo was a far more elegant solution.
Wow, this is quite an amazing update! The attitude for these updates is also something to be amazed at -- if you look at feedback for updates that other games have, there's quite a bit of negative feedback. This game is moving forward fast.
I love the new update for texture packs, too. It'll be easier to create custom textures now, and it's really a great (and subtle) addition.