I've experienced this bug before. I run Android 2.3.6 GINGERBREAD on both my Samsung Galaxy Tab P1010 and on my HTC Google Nexus One and I can confirm that this bug is uncommon however not biased. Great report, M.J!
I do say! This is a familiar bug! You'll find this bug has been present since the first version (0.1.0) of Pocket Edition!
Maybe this is entirely a framerate/performance issue?
No, Sabin, the issue here is the fact you'd NEED to do that in the first place. Johan has fixed it, anyway.
I have tried this too - it has the potential to link with world issues (whether THEY have been modded or they are corrupt. I have an idea of what this is now, but Aron and Johan, you guys are the devs. Try it, it happens when you have more than one saved world for me. (ONE of the worlds do not have a name)
They should normally come with the feature :/