Wow, it looks great! Much better than nCraft even though it is in 2D. I cant wait to try it out!  

!!!Explosive Update!!!
Version 0.9 is now attached to first post!


New features:
- EXPLOSIONS!:
  - destroy surrounding blocks which have a 25% chance to drop its item
  - processed as "explosion rays" ==> harder blocks can protect weaker ones behind them
  - harms mobs and the player
  - uneffective in water
  - leave fancy particles on fancy graphics mode
  - activate TNT
  - TNT:
    - craftable with 5 sand and 4 gunpowder
    - ignite it with [(-)]
    - activated TNT falls down and flashes
  - creepers:
    - they activate themself if they are in a 1-block-radius to the player
    - they flashe and explode
    - you can escape them and they don't explode if you get out of their explosion radius
    - they drop gunpowder

Improvements:
- improved performance: intelligent screen update system: the game tries to update the screen when you move so it wont lag while moving
- improved graphics:
  - stars at nightsky
  - the void underneath the bedrock is now black
  - better inventory GUI for clickpad models
  - debug information now only visible in the secret debug mode
  - block selection frame is now blue on interactive blocks and green on yourself if you have food selected in the itembar
  - small indicator on the top right corner which indicates the advanced crafting menu
- improved gameplay:
  - if you started a game as "creative" you can switch the gamemode with [m]
  - better creative inventory
  - less caves (less ragged surfaces and undergrounds)
  - more item drag'n'drop features with the + and - keys (too much ways to use to write here )
  - improved spawn logic:
    - mobs won't spawn in you
    - the probability to spawn a mob now depends on the amount of possible spots on the screen
  - crafting menu should now be visible on every OS
- the game automaticly selects fast graphic mode on grayscale devices
- slightly improved save format
- various bugfixes and other improvements

Why did it take such a long time for this small update? School started again! Sorry for that...
PS: I added a "eventually future features" section to the first post; all of them would be much work to implement so please tell me which I should work on

Did you fix the bugs in OS 3.1?

yaaay, explosives, let's cause everything to explode!

@annoyingcalc: Well damn. I'll try to fix it for the next update but I can not promise anything here
@LDStudios: Yes, that's because every mob despawns if it's more than 15 away from you... I'll try do make a better despawn logic here
After playing around a bit with fire in Minecraft I can say it's pretty easy to implement so I'm sure it will be in the next Update! Farming will be a bit more complicated but I'll try to finish it for the next Update. And redstone... I've a feeling that this will take another year of development 

Well, you could make it so that animals are generated with the map and cannot spawn afterwards. Then just make it so that they are saved and restored to /from a table.
That's how minecraft itself works.

I think finite Animals wouldn't be that useful in this 2D version because the world is finite and you can't breed animals yet, so if you'd have killed all animals, you couldn't get wool or leather anymore. I think the spawn mechanic could work like this: animals spawn until there are 20 animals (depending on mapsize) overall. If you kill some, new could spawn. I think monsters can spawn/despawn as they do right now (or would anyone like to have a pet creeper? ) I'll work on a mob store/restore system too

Btw the farming feature wasn't as complicated as I thought; I've nearly finished it

@LDStudio: They are, just place a sapling on Grass and wait a bit! Just look for some Minecraft Tutorials; I'm trying to keep everything as close as possible to the real Minecraft so the most should work