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First, it doesn't seem to work with the Staff of Regrowth, right? It's not just something I'm doing wrong? It works fine for placing grass or moss, but not for harvesting plants, pretty much the only thing I'd want it to do? Makes it kind of meh, doesn't it?

Second, block placement. Seems to me back in 1.2 something, if I had blocks selected, smart cursor on, then right-click on me, it would build a box around me. Not only had this disappeared, I'm not sure why it's behavior would be useful other than in rare cases. On occasion, I'll want to fill a cavern or something and it will put it somewhere in the neighborhood of where I want it, but mostly, about all I'm sure of is that it will place the block somewhere I'd never want to put a block, particularly if rapid placement is critical. And unless I'm confused, it seems to work differently if there are some sloped or half blocks near. Is there some logic to it, or is the behavior as random as it seems to be?
This question / problem has been solved by WingedKagoutiimage
For your second question, the Smart Cursor has gotten some new options that you can change in the settings menu under Cursor. They may be able to revert it back to the way you're used to.
Thanks. Turns out just as in 1.2.4, multiplayer is a little different. But yes, the behavior can be changed as you said. Pity it isn't something I could toggle through the three options using the Left-Ctrl -- off, nearest and fill, but have to exit the game world to change it. If it were even in the main settings next to Autopause, even.

Oh well, something to suggest on the dev boards, I guess.