The observer block was described as behaving like a block update detector. However, it no longer detects redstone updates on air blocks and the output pulse has been lengthened. This is not how standard BUDs work in minecraft.
Comments 5
http://mojang.com/2016/10/minecraft-snapshot-16w41a/
[Bug MC-107410] - Observer block outputs single game tick pulse, not single redstone tick pulse
[Bug MC-107730] - Oberserver block powers air blocks
The issue is that those are not bugs. That is how Block Update Detectors behave. The observer block is meant to emulate BUDs. Therefore, these new 'fixes' aren't fixes. If this is the intended behavior, then they should be classified as features and the observer block should no longer be advertised as emulating the current BUD style.
The the fixed bugs list.