...I'm pretty sure he understands that squids are in the update; he was talking about the sheer numbers of these things, which is kindof rare. Sure on any normal minecraft day you can see 4-5 in one area, but this here is outrageous!
Remember, I JUST spawned this world. All these pictures were taken BEFORE it could change to night (AKA the first day).
I think the mushroom planting algorith is somewhat broken, but that is since the halloween update at least.
It basically plants lots of mushrooms everywhere (lots is a little bit exagerated) but most of them detaches from the ground due to excessive light. At this point they completely vanish after 5 minutes, so they are quite common on your first day but after that not anymore.
Also the creeper spawned inside some cave and carelessly wandered out. Happens a lot.
Now the squid swarm is something interesting...
Edit: double ninja'd on the wandering creeper
If there was actually a creeper that size in game, I would cry myself to sleep.
I can picture it now, its legs not even attached to its body, and its making its merry way towards with, with the full intent to give you a bear hug that just sucks the life right out of you.