The update is huge so read it after the jump :)

Creative Mode

Superflat world type

Hunger

NPC Villages, Abandoned Mineshafts, Strongholds and Ravines

12 Music Discs

Chargeable bows

Critical hits

Sprinting

Players can parry with a sword

Ability to change the name of your world save

Chain Armor

Pressure Plates can now be placed on fences

New mobs

Endermen

Cave spiders

Silverfish

New Food Items

Apples

Raw Chicken

Cooked Chicken

Raw Beef

Steak

Melons

Melon seeds

Rotten Flesh

Cobwebs

Fence Gate

Iron bars

Glass pane

Stone Brick

Stone Brick Stairs

Stone Brick Slabs

Brick Stairs

Brick Slabs

Pumpkin Seed

Vines

Pumpkins and Melons grow from stems much faster, and do not require farmland around the stem to grow on

Sponges(Creative only)

New biome

Swamp biome

Ocean biome

Ocean floor now consists of Clay, sand and dirt, this makes clay easier to find

Mountain biome

River

Rivers flow through/in between biomes

Passive mobs will randomly flee if attacked by the player or other mobs (such as Cows)

Pig has 3D snout.

Sugar Cane can now be placed on sand

Chest has opening and closing animation

User-placed leaf blocks no longer decay

Skeletons hold full size bow

Shears can now collect Tall Grass and Vines

Exclusive Superflat option for the Nether

Option to turn clouds off

Large changes to Xbox 360 tutorial mode

Bonus chest world option

Option to turn PVP off

Option to turn fire spread off

Option to make TNT not detonate

Option to trust players (to op players)

Bug fixes:

Fix for duplication glitch.

Fix for aspect ratio of things in hand when in splitscreen mode.

Fix for issue with player data not saving (player starting world with no items they had when they saved)

Fix for redstone tiles burning out when they shouldn’t.

Fixed issue with Minecart with Furnace not being able to move another Minecart.

Fixed particle code for flipped 3rd person view.