Minecraft Beta 1.2 is live. All servers need to be updated to 1.2.
* Note blocks (right click to tune, trigger to play)
* 15 wool dyes
* A new water dwelling mob
* New tree types
* Reeds magically turned into sugar canes. They still make paper.
* A bunch of new crafting recipes
* One secret useful block
* One secret pretty block
* AND MOAR, probably. I forget!
* Paintings work in multiplayer
* Disconnecting while riding no longer keeps the player in the world
* A bunch more state is properly synched in multiplayer
* Fixed colors going weird on PowerPC
* Fixed a horrible chunk reload loop in singleplayer
* Fixed most lighting bugs in newly generated SMP maps
* Falling sand behaves better in SMP
The pretty block is sandstone and the lapiz lazuli block. Seriously, sandstone is not "useful" because it doesn't do anything dirt or cobble don't. But it looks nice, makes for some new looks to buildings. So we got a bonus pretty block.
But probably, it's that sandstone is one of the several features and changes omitted or forgotten in Notch's post, and the lapis lazuli block is the one he was thinking of when he said "pretty".