In the latest snapshot (14w34b, and most of the prior ones) setting the render distance to 32 causes major chunk loading lag.
The attached screenshot shows the problem, the game will sit like this for probably 30 seconds and not respond to any commands (like changing the gamemode or weather, etc.)
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I would disagree. Hightly doubt Mojang would add the ability to do something that causes the game to outright freeze for some amounbt of time while the chunkloader catches up.
Technical issue at most. Not a bug. If your computer can't handle it, don't set that option so high.
if a machine with 20GB if RAM a core i7 and a GeForce 660 cant handle this game at its highest settings (when it can do so which much more demanding games), thats the game's fault. Not the computer its running on.
This is sign that you do not have enough RAM allocated. By no means is this a bug though.
32 render distance is only for people with enough RAM & a powerful enough computer. You can try allocating more memory, otherwise play on a render distance your computer is better suited for.
You are rendering 32 chunks meaning you are doing a 16x16 area (one chunk) 32 times more then would would do, and the lag is necessary because you are rendering about 1024 blocks each time, in other words this is not a bug