I was used to sell rotten flesh to priest, but now it is no more feasible.
Is that a bug or an intentional feature?
As of snapshot 12w22a, Priests no longer offer to buy Rotten Flesh or Eyes of Ender. Eyes of Ender are now sold by priests, and rotten flesh is not a trade at all.
THE REASON?
Comments 7
The rotten flesh trade was a test. It was removed because it's easily exploitable. I for once have +/- 8 double-chest full of that thing.
Jeb hinted that this may return as some sort of quest, but it was a loooong time ago.
This is not a bug, but a feature request, please post it in http://www.minecraftforum.net/forum/1-suggestions/
You've answered Your question. Intentional.