When on fast graphics, leaf items render with transparency as though they were on fancy graphics, while the blocks properly render as opaque.
After testing, I determined that this bug was actually introduced in Snapshot 14w25a, when the fast/fancy graphics were being re-worked for Minecraft 1.8, and it's been in the game ever since.
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We're tracking this issue as MC-57356, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as Won't Fix, which means this is considered a bug but won't be fixed. The description of that ticket or the comments might explain the rationale. Please do not leave a comment on the linked ticket.
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duplicate of MC-57356