Chunk loading causing immense game-wide lag spikes

Ya, this is a serious issue. On vanilla, when a player logs in, even on a very capable server with 3+gbs ram allocated, there is a huge lagspike.

It was not nearly as bad before 1.8.

When having this issue:

Please force a crash by pressing F3 + C for 10 seconds while in-game and attach the crash report ([minecraft/crash-reports/crash-<DATE>-client.txt|http://hopper.minecraft.net/help/finding-minecraft-data-folder]) here.

Minecraft Crash Report ----
// Who set us up the TNT?

Time: 1/22/15 5:45 PM
Description: Manually triggered debug crash

java.lang.Throwable
at bst.s(SourceFile:1584)
at bst.au(SourceFile:886)
at bst.a(SourceFile:321)
at net.minecraft.client.main.Main.main(SourceFile:124)

A detailed walkthrough of the error, its code path and all known details is as follows:
---------------------------------------------------------------------------------------

– Head –
Stacktrace:
at cen.a(SourceFile:309)

– Affected level –
Details:
Level name: MpServer
All players: 1 total; [cio['Sagouine'/77, l='MpServer', x=411.69, y=116.58, z=787.29]]
Chunk stats: MultiplayerChunkCache: 4225, 4225
Level seed: 0
Level generator: ID 00 - default, ver 1. Features enabled: false
Level generator options:
Level spawn location: -188.00,64.00,-4.00 - World: (-188,64,-4), Chunk: (at 4,4,12 in -12,-1; contains blocks -192,0,-16 to -177,255,-1), Region: (-1,-1; contains chunks -32,-32 to -1,-1, blocks -512,0,-512 to -1,255,-1)
Level time: 58513 game time, 58513 day time
Level dimension: 0
Level storage version: 0x00000 - Unknown?
Level weather: Rain time: 0 (now: false), thunder time: 0 (now: false)
Level game mode: Game mode: creative (ID 1). Hardcore: false. Cheats: false
Forced entities: 61 total; [aer['Creeper'/10327, l='MpServer', x=338.63, y=20.00, z=799.97], agi['Zombie'/10167, l='MpServer', x=447.34, y=45.00, z=826.34], agi['Zombie'/10562, l='MpServer', x=393.50, y=19.00, z=751.50], agh['Witch'/10160, l='MpServer', x=410.50, y=46.00, z=845.50], agi['Zombie'/10563, l='MpServer', x=388.50, y=19.00, z=750.50], aer['Creeper'/10332, l='MpServer', x=451.08, y=21.86, z=762.66], afw['Skeleton'/9490, l='MpServer', x=373.50, y=46.00, z=724.50], aer['Creeper'/9492, l='MpServer', x=376.53, y=46.00, z=725.03], agi['Zombie'/10168, l='MpServer', x=443.47, y=42.00, z=828.47], abs['Bat'/10033, l='MpServer', x=450.72, y=23.07, z=758.34], agi['Zombie'/10169, l='MpServer', x=443.01, y=41.26, z=825.41], abs['Bat'/10032, l='MpServer', x=447.00, y=26.11, z=762.67], abs['Bat'/10030, l='MpServer', x=433.03, y=18.42, z=784.36], abs['Bat'/10031, l='MpServer', x=440.34, y=23.15, z=768.31], aer['Creeper'/10589, l='MpServer', x=448.50, y=54.00, z=843.50], agi['Zombie'/9609, l='MpServer', x=386.97, y=23.00, z=787.47], aer['Creeper'/10588, l='MpServer', x=448.63, y=56.00, z=848.03], agd['Spider'/10158, l='MpServer', x=375.50, y=33.00, z=855.50], afw['Skeleton'/9608, l='MpServer', x=386.41, y=23.00, z=786.41], afw['Skeleton'/10435, l='MpServer', x=444.50, y=33.00, z=720.50], agi['Zombie'/9191, l='MpServer', x=397.50, y=37.00, z=711.50], abs['Bat'/10019, l='MpServer', x=427.76, y=56.66, z=778.75], agi['Zombie'/8831, l='MpServer', x=397.50, y=38.00, z=725.78], afw['Skeleton'/9648, l='MpServer', x=407.50, y=32.00, z=766.50], afw['Skeleton'/8910, l='MpServer', x=399.06, y=43.00, z=793.41], aer['Creeper'/10341, l='MpServer', x=453.44, y=64.00, z=839.00], abs['Bat'/9998, l='MpServer', x=416.68, y=47.77, z=759.97], aer['Creeper'/10259, l='MpServer', x=409.50, y=55.00, z=765.50], aer['Creeper'/10261, l='MpServer', x=410.50, y=55.00, z=764.50], aer['Creeper'/10260, l='MpServer', x=410.94, y=55.00, z=767.63], abs['Bat'/9961, l='MpServer', x=418.79, y=27.85, z=806.65], afw['Skeleton'/10264, l='MpServer', x=422.50, y=46.00, z=782.50], aer['Creeper'/10096, l='MpServer', x=417.50, y=38.00, z=751.50], agd['Spider'/10088, l='MpServer', x=424.50, y=18.00, z=788.50], agi['Zombie'/9851, l='MpServer', x=392.50, y=13.00, z=784.50], agi['Zombie'/9850, l='MpServer', x=392.50, y=13.00, z=785.50], agi['Zombie'/9853, l='MpServer', x=392.50, y=13.00, z=782.50], agi['Zombie'/10516, l='MpServer', x=378.50, y=35.00, z=759.50], agi['Zombie'/9852, l='MpServer', x=390.50, y=13.00, z=784.50], aer['Creeper'/9438, l='MpServer', x=383.50, y=22.00, z=777.50], abs['Bat'/10249, l='MpServer', x=362.95, y=15.56, z=776.99], cio['Sagouine'/77, l='MpServer', x=411.69, y=116.58, z=787.29], aer['Creeper'/10087, l='MpServer', x=424.50, y=18.00, z=790.50], abs['Bat'/10252, l='MpServer', x=359.41, y=16.80, z=779.00], aer['Creeper'/10193, l='MpServer', x=358.50, y=16.00, z=782.50], afw['Skeleton'/8843, l='MpServer', x=388.50, y=46.00, z=789.50], aer['Creeper'/9440, l='MpServer', x=380.50, y=22.00, z=780.50], agi['Zombie'/9321, l='MpServer', x=397.50, y=37.00, z=713.50], aer['Creeper'/9712, l='MpServer', x=413.88, y=46.00, z=761.44], aer['Creeper'/9713, l='MpServer', x=419.72, y=40.00, z=755.63], agd['Spider'/10067, l='MpServer', x=400.50, y=34.00, z=830.50], agd['Spider'/10068, l='MpServer', x=401.50, y=34.00, z=826.50], agi['Zombie'/8832, l='MpServer', x=397.50, y=38.00, z=726.69], aer['Creeper'/9819, l='MpServer', x=382.50, y=26.00, z=831.50], agi['Zombie'/9821, l='MpServer', x=381.50, y=26.00, z=832.50], aer['Creeper'/9820, l='MpServer', x=387.00, y=22.00, z=828.47], afw['Skeleton'/9574, l='MpServer', x=391.50, y=23.00, z=806.50], agi['Zombie'/8854, l='MpServer', x=356.50, y=31.00, z=776.50], abs['Bat'/10400, l='MpServer', x=450.67, y=14.19, z=838.87], aer['Creeper'/9469, l='MpServer', x=408.50, y=31.00, z=755.50], agi['Zombie'/8855, l='MpServer', x=353.50, y=31.00, z=773.50]]
Retry entities: 0 total; []
Server brand: vanilla
Server type: Integrated singleplayer server
Stacktrace:
at cen.a(SourceFile:309)
at bst.b(SourceFile:2293)
at bst.a(SourceFile:330)
at net.minecraft.client.main.Main.main(SourceFile:124)

– System Details –
Details:
Minecraft Version: 1.8.2-pre4
Operating System: Mac OS X (x86_64) version 10.9.5
Java Version: 1.6.0_65, Apple Inc.
Java VM Version: Java HotSpot(TM) 64-Bit Server VM (mixed mode), Apple Inc.
Memory: 84998832 bytes (81 MB) / 1060372480 bytes (1011 MB) up to 1060372480 bytes (1011 MB)
JVM Flags: 5 total; -Xmx1G -XX:+UseConcMarkSweepGC -XX:+CMSIncrementalMode -XX:-UseAdaptiveSizePolicy -Xmn128M
IntCache: cache: 0, tcache: 0, allocated: 12, tallocated: 94
Launched Version: 1.8.2-pre4
LWJGL: 2.9.2
OpenGL: AMD Radeon HD 6750M OpenGL Engine GL version 2.1 ATI-1.24.38, ATI Technologies Inc.
GL Caps: Using GL 1.3 multitexturing.
Using GL 1.3 texture combiners.
Using framebuffer objects because ARB_framebuffer_object is supported and separate blending is supported.
Shaders are available because OpenGL 2.1 is supported.
VBOs are available because OpenGL 1.5 is supported.

Using VBOs: No
Is Modded: Probably not. Jar signature remains and client brand is untouched.
Type: Client (map_client.txt)
Resource Packs: [Lithos HD Font Add-on.zip, Soundpack]
Current Language: English (US)
Profiler Position: N/A (disabled)

The memory assigned to Minecraft is used up:

Memory: 84998832 bytes (81 MB) / 1060372480 bytes (1011 MB) up to 1060372480 bytes (1011 MB)

Assign more memoy, see MC-12949

This is a technical support issue; this site is for bug reports only. For technical support please use the Mojang Support Center.

Oh my, I'm absolutely sorry. I cranked the view distance to the maximum without noticing that the maximum view distance had increased by a whole 16 chunks between 1.7 and 1.8.