He's walking on the ceiling! He's got an extendable magic staff! His bow shoots bombs! Demilogic have released a video showing off some of the new items that will land with the upcoming 1.0.5 update for Terraria, and they are fantastic. As well as the obviously brilliant boots, and the all-destroying Hellfire Arrows, there's a more subtle effect that seems to highlight ore that would ordinarily be hidden in darkness - this could be something to do with the alchemy mentioned in the video title.
In a recent forum post , developers Re-Logic revealed that they would be adding potions in the next update, along with new potions and an improved Guide to help newcomers settle into Terraria's world a little easier. There's no release date for the patch yet.