I like 1.2. In my opinion, jungles are the greatest and I love how you can use vines as ladders (makes a great treehouse essential). Cats, ocelots, and iron golems are just those little things we all expect to come in future updates. If you summarize 1.2 up, I think it deserves a thumbs up (if you can get past deleting the worlds that you put so much time and effort into in 1.1).
I would have to make it more "realistic". I would add tornadoes and hurricanes, but not just that. I'd also implant the Mo' Creatures and the Ather mod as just another thing in Minecraft. I wish for these things badly....