Moving this here since I don't want to clutter up the update thread:
Congrats, you can use 3D textures easier. But you still have to work around far too many bugs that Mojang isn't fixing. And that list of bugs is growing, not shrinking. As a player, I don't care about 3D textures. I care about stability and playability. If I wanted fancy graphics, I would go play a different game, like Crysis. MC is not a game you play for graphics.
Can I restate your post slightly?
I think MC is totally a game you play for graphics, particularly modded. I spend a lot of time and effort making my base look really pretty.
I don't think it's a game you play for high-tech realistic graphics (although some of the terrain gen, seen as a panorama, would argue against even that.)
I agree with you otherwise. Bug fixes should be first, and I feel Mojang releases have been lackluster lately. I installed 1.7 Vanilla when it first came out, just to see the changes, and having been a modded player as long as I have been, I was pretty unimpressed. I have a single mod that adds over 80 biomes. I have two mods which, combined, add close to 100 trees. I've had stained glass since forever.
I'm glad that they want to add more content, but calling it "the update that changed the world" is facetious, and shows a serious lack of effort and imagination; two new trees? DOUBLE the amount of Vanilla biomes? Much wow. So update. It fails to impress somehow when I know many mods being made by a single person are able to add far more stuff in a far shorter time.
Mojang finally got the right idea with horses; they brought DrZhark of MoCreatures in on the development, credited him for it and incorporated a previously mod-only feature. Total development time on their end, negligible.
So instead of spending all that time to add two new trees to the game, go to Sengir. Go to Binnie. Go to the BoP team. Say "we want to add six new types of trees to the core game, here are the ones we'd like, we'll happily credit you and maybe give you a few bucks." They could develop an entire content pack in record time by
asking for the help of people who are doing the job for free anyway and have their dev team's time entirely dedicated to bug-killing; and it's not like Mojang can't afford to toss a few bucks in the direction of the people who are keeping their game so popular as it stands; their net profit last year was in the neighbourhood of $125 million.
Swinging back around to the point, I think that the 3D textures thing is actually a very good change from their perspective, since it makes things easier on modders, but I also think that Mojang is looking at things from the wrong way around. Heck, hire a team of the best modders around today and ask them to tidy up, bugfix and add an API to the core code. Pay the top names in modding for their time fixing your code. That is how to see fast, effective results.