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What is the new use for bonemeal mentioned in the 1.6.6 patch notes?
Using it on grass with enough space will cause long grass and flowers to appear.
You can also use the bone meal on the underside of the block and long grass will still grow.
The function of bonemeal and grass has not changed in the 7 months between 1.6.6 and 1.0.1.
It will still give you long grass and flowers. The former is likely to become important since sheep will be able to eat it next patch to regrow their wool.
For the record: Currently Sheep eat both grass from grass blocks and from tallgrass. They will eat grass regardless if they have been sheared or not, but baby sheep will eat more often than old sheep.
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