Jeb has fully released Minecraft 1.2! Here are some new features:

-Added ocelots
(When tamed, they become cats)

-Added iron golems
(To defend villagers)

-New AI

-Dogs can have babies

-Villagers can have babies

-Added rare drops from mobs
(Bow, iron helmet, etc.)

-New blocks
(Redstone lamp, square stone bricks)

-New items
(Exp. potion, fire charge)

-New height limit
(256 instead of 128)

-Double doors work better

-Bug fixes

-Removed Herobrine :P

-Added 20% more awesomeness :D

-When dispensers shoot out spawn eggs, it turns into the actual mob

-Snow golems die in water, rain, deserts and jungles

-Zombies attack villagers

-Zombies break down doors on hard mode

Let's hope 1.3 will have more good stuff!