I have the same problem (AMD HD Radeon 8800M) which plays games like skyrim at ultra settings with mods even at 60 frames. I dont know how minecraft cant handle it, but w/e. Also it only happens from 25-30 render distance. Any lower and it basically goes away.
The game lets me play normally if I set the render distance to 32 prior to entering the world. Also, as far as I know I had VBO off by accident.
Proof for 15w42a
Screenshot(https://i.imgur.com/b2SRdhj.jpg) Notice the maximize button greyed out.