The water flowing texture that appears when you place a transparent block underwater is showing on glass, stained glass, leaves and retracted pistons but not on ice, glowstone, tnt or redstone blocks.
I don't know which behaviour is intended but either way it's inconsistent.
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Is this still a concern in the current Minecraft version 14w06b / Launcher version 1.3.9 or later? If so, please update the affected versions in order to best aid Mojang ensuring bugs are still valid in the latest releases/pre-releases.

Fixed (for ice) in 1.7.5. Glowstone, redstone and TNT blocks aren't transparent so that's intended.

Works as Intended.

1.7.10 and this is still happening 😞 If only I had this pretty view underwater!

Makes no sense! Why would water flow down glass? Hinders creativity, is not realistic, pointless, please fix this!

Add 1.8 for the glass block please.

Flowing water behaves inconsisteltly again with the addition of sea lanterns.
Besides, this bug has not been fixed correctly (please do not turn your head away and stick with me as I progress trough my explanation). There are two blocks that have been omitted.
Initially, when this issue was opened, there was an inconsistency with water flowing against some transparent blocks and not against ice. Since then, water has been patched to render the flowing texture against all transparent blocks. All but two.
First one is water itself. Ok, this example is stupid, but water does not render a flowing animation when next to another water block even though water is a transparent block in itself. Because it would make no sense. Obviously. But that's not the point. More on that later.
Second one is the sea lantern. It shows no flowing water animation when water is next to it. It should since it is a transparent block as well. Or should it?
Flowing water is usually rendered when there is an air block next to it, because air next to water causes water to flow. When flowing water is being rendered next to something like glass, it is because this glass is considered as air. But it is not. It is a block. No blocks but a few show any flowing animation when water is next to it, since water does not flow when it is next to a block. But water does not actually flow when next to glass or ice either. The flowing animation next to these two blocks is hereby a mistake
As shown in the picture above, and as it is known, glass and ice both cause water to flow next to it. There is no reason for this to happen. In first place, because water Does Not Actually Flow when it is next to those blocks. In second place, because if water was supposed to flow next to transparent blocks, it would have to flow next to itself as well, which would make no sense. In third place, this renders glass and ice almost opaque underwater.
Even though enough reasons have been given to show that the approach this bug has been given might have been slightly rash, expanding on the latter: currently when trying to build a structure underwater, glass always has this blue curtain of flowin water on one side, which looks terrible, and defeats the purpose of it, which us to be able to see trough it. It would be therefore optimal in terms of gameplay if this was reversed and water did not flow next to glass or ice, for this would allow to use these two blocks under the water in a much better way.

Relinked to more current MC-91224