Redstone Update

The Redstone Update is a planned major update labeled as 1.5. Development shortly began after the announcement at MineCon 2012 at the Future Updates with the Minecraft PC Team and The Future of Mod API talks.

You can watch the presentation here:

So far, 8 development snapshots from to  have been released. 1.5 will probably be released in February 2013.

General
The features were:
 * Rewriting Rendering engine
 * Requires a higher OpenGL feature-set
 * Includes some sort of fallback for older hardware
 * Much faster overall rendering, resulting in more Frames per Second.
 * Including the support for new lighting system, to not do extreme bugs
 * Incomplete
 * Rewriting Lighting engine
 * Lighting fixes and improvements similar to the ones first introduced in snapshots 12w39a/b
 * Support for fancy lighting control
 * Support for more realistic lighting, such as active furnaces only giving off light from their front surface
 * Incomplete
 * Improved Texture Packs
 * Textures now use one file per block or item, which are stitched together at runtime, texture sizes don't need to be consistent
 * Any block and item can be animated by putting the frames underneath each other in the right
 * Use an optional  to specify frame order and duration
 * Special rules apply for water, lava, compass and clock
 * Existing texture packs will "automagically" be converted
 * Vanilla textures will be used if texture files are missing
 * Support for high resolution textures
 * Not intended to support HD skins
 * Added

Gameplay

 * Redstone Improvements
 * More predictable and consistent redstone behavior
 * The functionality of BUDs may be affected
 * Eliminating directional quirks
 * Most of the timings of redstone contraptions will change
 * Overall redstone will be more like analog signals
 * Redstone signal strength will matter (for some blocks)
 * Complete
 * Better Inventory management
 * Double Click items to fill the stack up as much as possible
 * Drag item stacks around to divide them up over the dragged-over slots
 * Drag item stacks around with the right mouse button to place one of that stack in each dragged-over slot, if that slot is not occupied already
 * + Double Click items in a crafting area to place all items in the inventory
 * + Double Click an item stack to move all other item stacks of that kind to that part of the inventory
 * Pressing while the mouse is over an item in the inventory or a container to drop it
 * Added
 * Added & Improved Death Messages
 * Now include the cause of death, the player, the deceased player was fighting at time of death and name of the item used to kill
 * Player fell off a ladder
 * Player fell off some vines
 * Player fell out of the water
 * Player fell from a high place
 * Player fell into a patch of fire
 * Player fell into a patch of cacti
 * Player got finished off by Player or Mob using Weapon
 * Player walked into a fire whilst fighting Player or Mob
 * Player was burnt to a crisp whilst fighting Player or Mob
 * Player tried to swim in lava while trying to escape Player or Mob
 * Player walked into a cactus while trying to escape Player or Mob
 * Player was slain by Player or Mob using Weapon
 * Player was killed trying to hurt Player or Mob
 * Added
 * Improved renaming of containers and Spawn Eggs
 * Spawn Eggs
 * Mobs spawned from renamed eggs have the name of the egg and the names will appear in the death message
 * Mobs can display their custom name as nametag using an NBT tag
 * Mobs spawned from named Spawn Eggs display their name over their head when viewed within a 6 block radius
 * Containers
 * Renamed Chests, Trapped Chests, Dispensers, Furnaces, Brewing Stands, and Enchantment Tables display the new name in their GUI
 * Renamed Command Blocks use their name in the chat
 * Added
 * Updated Language files
 * Language files can now be updated via the background downloader
 * No need for a new Minecraft release
 * Improved Options & Menu
 * Moved Texture Packs button to options menu, instead of title screen
 * New Chat Settings in Multiplayer Settings
 * Scale, Focused Height, Unfocused Height and Width is now configurable
 * Added
 * Added new Commands
 *  command
 * The scoreboard can be used to track deaths, players killing another player, players killing something a mob, or players activating commands
 * The complicated system uses a combination of name, display name, and criteria, and track an integer number of points for players.
 *  command
 * For analog signal output, can be used in a command block next to a comparator
 * Added
 * Improved Creative Mode
 * In Creative mode, you can hit mobs or players from five blocks away
 * Added
 * Fixed many bugs
 * Fixed dropped anvil making no sound when it breaks
 * Fixed linux users being unable to open to LAN because it's bound to 127.0.0.1
 * Fixed Piston arms sometimes becoming invisible when pulsing quickly
 * Fixed powering a Redstone Wire with a stronger signal not always propagating the newer signal fully
 * Fixed Dispensers shooting whenever they are updated while powered
 * Fixed pulse length and delay being inconsistent with certain torch and repeater combinations
 * TNT explosion being delayed until exiting and re-entering world
 * Minecart noise gets stuck on long cart rides and incorrect sound fixed
 * Fixed Minecraft very slow to join or update a server, takes long time to login (30 seconds or 1 minute)
 * Tile entity crashing bug fixed
 * Fixed Piston extended and retracted at the same time
 * Flowing Water not drags the player while flying.
 * Fixed Chest glitch that lets them appear as if they are opened while they are not.
 * Achievements lost after updating fixed
 * Breeding Cows can not consume more than one wheat
 * Boats and Minecarts not be dropped in Creative
 * Armor enchantments (besides Thorns) have no effect on mobs fixed
 * Fixed dying stacked Leather Armor duplicates the armor
 * Water does form source blocks properly on top of existing source blocks
 * Powered Rail on slope stays powered fixed
 * Jukebox crashes when breaking with no record inside fixed
 * Wither in Peaceful spawns very glitchy fixed
 * Block breaking resets when the item you're holding changes fixed
 * Fix for random black spots
 * Fix for some rendering bugs

Blocks & Items

 * Redstone Comparator
 * The crafting recipe is 3 Redstone Torches, 1 Nether Quartz and 3 Stones
 * It is the same as a repeater, but with 2 inputs
 * If input A is stronger or equal to input B, it either repeats the signal or outputs a fresh signal
 * Output is toggleable by right clicking.
 * If input A is weaker than input B, then there is no output.
 * All containers output a redstone signal when a Redstone Comparator is placed against it directly. The strength of it depends on how full the container is and what disc number is used in Jukebox
 * This works with Trapped Chests as well, meaning it can provide two redstone signals with different causes at the same time
 * Added
 * Hopper
 * The crafting recipe is 5 Irons and 1 Chest
 * Places and takes out items in Hoppers, Chests, Furnaces, Minecart with Chests, Minecart with Hoppers, Dispensers, Droppers, and Brewing Stands
 * Allows for the automation of many processes collecting the drops
 * Powering the Hopper now also stops it from taking in items
 * The redstone signal emitted when a Comparator is placed against it directly
 * 1 item will give a signal strength of 1, a third of a stack (21 for items which stack to 64) gives a signal strength of 2
 * The number of full stacks x 3 = Signal strength
 * Added
 * Dropper
 * The crafting recipe is 7 Cobblestones and 1 Redstone
 * Places items in containers in front of them, if there is no container it will dispense the item without using it
 * A dispenser 'shoots' items at you, while a dropper 'throws' items at you
 * Can face all 6 directions, with a different texture when facing up or down
 * Need redstone signal to drop items
 * Added
 * Daylight Sensor
 * Outputs a signal with a strength corresponding to the intensity of the sun
 * Added
 * Trapped Chest
 * The crafting recipe is 1 Chest, and 1 Tripwire Hook
 * Gives out a signal depending on the amount of players looking inside
 * Large Trapped Chests can be staggered with Large Chests to allow more compact storage
 * Transmit signal downward through one block. This does not apply horizontally
 * Texture is slightly different than a normal chest, with a red stain around the latch
 * Added
 * Weighted Pressure Plate
 * Used to detect item drops
 * Gold version reaches full strength at 60 items
 * Iron version reaches full strength at 600 items
 * Linear, so 10 strength signal means twice as many items as a 5 strength signal
 * Added
 * Block of Redstone
 * The crafting recipe is 9 Redstones
 * Stores Redstone similar to Block of Diamond, Block of Gold, Block of Iron, Block of Lapis, and Block of Emerald
 * Emits constant redstone signal
 * Works as pushable redstone power source
 * Added
 * Nether Quartz
 * Picked up when break Nether Quartz Ore
 * Is a crafting ingredient for Daylight Sensors and Redstone Comparators
 * Can be crafted into decorative blocks.
 * Nether Brick (item)
 * Obtained by smelting Netherrack
 * Added
 * Changed Nether Brick
 * The crafting recipe is 4 Nether Brick (item)
 * Added
 * Nether Quartz Ore
 * Drops 1 Nether Quartz item when mined
 * Can be legitimaly obtained by Silk Touch enchantment
 * Drop more when picked up with Fortune enchantment
 * Added
 * Block of Quartz
 * The crafting recipe is 4 Nether Quartzes in a square
 * Decorative block
 * Added
 * Quartz Slab
 * The crafting recipe is 3 Block of Quartz
 * Can be placed upside down same all other slabs
 * Decorative block
 * Added
 * Quartz Stairs
 * The crafting recipe is 6 Block of Quartz
 * Can be placed upside down same all other stairs
 * Can be updated to corner same all other stairs
 * Added
 * Chiseled Quartz Block
 * The crafting recipe is 2 Quartz Slabs
 * Decorative block
 * Added
 * Pillar Quartz Block
 * The crafting recipe is 2 Block of Quartz
 * Decorative block
 * Pillar Quartz Blocks can be placed sideways, use the side of the block to place
 * Added
 * Improved Lava
 * Texture changed
 * Improved Water
 * Creating a infinite water source no longer needs a block underneath, but has to have a water source block.
 * This means you won't ruin rivers or oceans with Buckets
 * Improved Detector Rail
 * Redstone Comparators powered by them now give out a signal depending on the fullness of the container on the rail
 * Improved
 * Activator Rail
 * Used to trigger Minecart with TNT
 * Needs to be powered by redstone
 * Transmits power up to 8 activator rails far
 * The crafting recipe includes 2 sticks, 1 redstone torch and 6 iron ingots.
 * Added
 * Minecart with TNT
 * Triggered by Activator Rails
 * Crafting recipe is a TNT block on top of a minecart (allowing for creation in the 2x2 inventory)
 * Explodes even more violently the faster it goes
 * When blown up using activator rails, they no longer destroy rails and supporting blocks
 * Still blows up redstone materials
 * Added
 * Minecart with Spawner 
 * Possibly to it spawn in Abandoned Mineshafts or add Monster Spawner to Survival Mode to craft the Minecart with Spawner
 * Unconfirmed
 * Minecart with Dispenser 
 * Triggered by Activator Rails
 * Unconfirmed
 * Minecart with Hopper 
 * Crafting recipe is a hopper on top of a minecart
 * Can only be emptied by passing over a hopper
 * Can pick up items it passes over
 * Added
 * Changed Bone Meal
 * Now grows crops a few stages as opposed to automatically pushing them to the final growth stage
 * Gives off green particles when used
 * Changed
 * '''Improved Double Slabs'"
 * will now be the "smooth stone slab block" and will remain so
 * Generally: If the top bit is set, the top texture will be used on all sides, also allowing for smooth sandstone blocks
 * Improved Dispensers
 * Now equip armor to players that are up to 1 block away
 * Can place and activate TNT
 * Now use Bone Meal on a crop or sapling in front of them
 * Can create fire in front of them with Flint and Steel, which consumes durability
 * They can now face all 6 directions, and use a different texture when facing up or down
 * Changed
 * Improved Minecarts
 * The possibility of linking minecarts together (driven by furnace minecarts)
 * Unconfirmed
 * At least one new Rail
 * To unload mobs and perhaps players when reached
 * Unconfirmed
 * Locked Chest
 * Changed texture, it says missing texture
 * Snow
 * Now you can stack it upon each other ("layer" snow)
 * Now Acts as a slab
 * Changed

Mobs

 * Improved Skeletons
 * Now shoot from 15 blocks away, instead of 10
 * Scales to difficulty
 * They now shoot faster when their target is closer
 * They shoot players one block away
 * Improved Zombies
 * Scales to difficulty
 * They now alert other Zombies with an x-radius when they see the player
 * They get more powerful as they lose health
 * When on fire, they can now set players on fire
 * Now become aggressive and come towards you when shot from farther away
 * Improved Mobs
 * Mobs no longer walk over rails unless they are pursuing the player

World Generation

 * Nether
 * Added Nether Quartz Ore to the Nether, there is an average of roughly 69 ores per chunk
 * Abandoned Mineshaft
 * Now spawn items on Minecart with Chests, instead of Chests