Minecraft wiki entry for Development_versions, associated text: Video Settings
Render distance is now a slider ranging from 2 to 16 chunks.
The sky is now visible on Short (4 chunks) render distance.
The chunks can now render past 12 chunks.
Max framerate is now a slider ranging from 10 to 250 fps, then unlimited.
Added mipmapping, anisotropic filtering, and FSAA (as a shader).
Mipmap levels setting is a slider ranging from off to 1 through 4.
Anisotropic filtering can be disabled or set to 2, 4, 8 or 16.
Post-Processing (shaders) can be toggled.
They now display on the whole block.