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Notice how there's no NPCs running around?
And how the bottom of all the houses is made out of mossy cobble, like it's been neglected for a long time?
Seems like notch is trying to add a hint of mystery to Minecraft, in the form of abandoned villages and ruins of... random... things.
I'm not sure if it is Mossy Cobblestone.
There is another similar stone in the pic but without the moss.
That wont be cobblestone coz they just retextured the cobblestone.
Give a man a fish, and he'll be fed for a day.
Possibly something to do with this?