Hi. I can't seem to edit the affected versions list. However, it is still present in 15w49b.
Should reopen because Mojang is now officially a Microsoft company.
Still an issue for Minecraft 1.7.9 and 14w18b.
You will have to set up a multisampled FBO to fix this issue. Look up GL_EXT_framebuffer_multisample
Confirmed in 14w18a. On 64-bit Java, Windows 8.1 64-bit, Geforce GTX 660 Ti, driver 337.61.
Video at https://www.youtube.com/watch?v=Jj6G4v_aFCw
14w05b still has the "flat" biome coloration and the transition over only a few blocks. To fix this bug would require adding temperature and rainfall values to the world file format to emulate the pre-Anvil behavior.
Pre-Anvil the world generator would use the calculated Temperature and Rainfall values to color the foliage, and select the biome based on where those values fell (with additional coloring for Swamp and Jungle). However, with the Anvil format the calculated biome is saved into the world file, then the Temperature and Rainfall values discarded. Then the stored biome is colored with a "flat" color based on the average temperature and rainfall for that biome, with some blending at the edges. Storing the Temperature and Rainfall values instead of discarding them would allow the renderer to properly color the biomes, and allow world editors to specify custom values (like they can for biomes with Anvil) to better customize the foliage color in the world.
I think this is because the Anvil format does not store the calculated Temperature and Rainfall values when the world is generated, thus the game has to go with the "average" values for the biome stored in the world file.
Perhaps what is needed is a revised version of Anvil that stores the temperature and rainfall, and when upgrading chunks, recalculate those values and store them. This would restore the original smooth transitions.
The underlying issue is that pre-Anvil the foliage color was calculated by values of temperature and rainfall per block, and the biome was calculated based on those values. Since Anvil, those values have been thrown out, and thus the data necessary for a long, smooth transition between biomes no longer exists.
Edit: Just tested with 16w07b
The biome coloration is still quite flat. Pre-Anvil there would be fluctuations in color, based on the mentioned temperature and rainfall values.