i can confirm this, fresh started the game,decided to kill a 'harmless' zombie but had to go afk iRL(pressed Esc to pause), came back to game, dead automatically cause the game did not paused, just the screen
Same, doesn't work, any type of world, any seed, villages do not generate, even did a flat world with only dirt and villages allowed... empty... mobs, animals, grass,etc, everything except villages
also affects pre 1.5 it only accepts the word "TRUE" lower or uppercase mix up doesn't matter, but the only way to turn it on the word 'on' is wrong is the word "true" any other value it will be accepted and be turned false off but will show the value introduced, works on single and multi player.
tried on a flat world, changing to any difficulty, and died on purpose several times wither fall damage or killed by zombies.
way to reproduce and easy to be misleaded into
type /gamerule keepInventory
shows keepInventory off
-->this part i thought i could write 'on' due to the game telling me it was 'off'
type /gamerule keepInventory on
shows keepInventory on
-->didn't knew the value is still off, seems 'on' and 'off' are just display info not a real value
die in anyway
inventory droped
worked on win7, lastest java and preMc release at the time of the post, i found out in multiplayer while deep underground killed by cavespiders x.x R.I.P. our loot
i can also confirm this for the 14w07a, just made a flat world, fill a cube of 10 x 10, turned it into a cheese from all the tunnels and holes i did for testing, mined blocks either close or away from my character teleported above the "ceiling" waiting on top of the cube, or 3 blocks away outside the cube on the ground(this is after mine the block and the item been on the ground without picking or interacting)
i usually saw this behavior on normal survival when the game "lags" can't keep up and waits from 1 to 5 seconds to pop the block from normal to been mined with incredible out of proportion arcs or teleports between the location it should have fallen initially and the location the lagged arc left it