I don't think they consider it a bug, the one who set out to "fix" this is aware of it and said it's this or nothing. The only light in the tunnel I can see is that sprites can be under water with no problems, the clams mob works fine. I did some experiments where I had coral spawn as mob sprite by editing the clams mod. This kinda works, but I haven't found a way to make sprites be stationary and not follow the camera, also the sprites parameter only creates one plane, and we'll need two. But people who can code the engine should be able to use that, they can make a "plantlike sprite" or something that behaves the way we need it to.
Without being a coder and really knowing what I'm talking about, it seems to me that the entire liquid system is kinda broken, or badly implemented. If something can exist in air, then why is it not behaving the same way in water? Below the surface we don't need there to be actual water, just something that tells the game "this is water" so it can apply the blue overlay and slow the movement and so on. It's only really where air and water collide that requires special treatment. I'm guessing it has something to do with how voxels work that is making this difficult. But wouldn't it be cool if both air and water was considered liquids of different density and it was only where they collide that required any calculations? That way we could make all kinds of new game mechanics, like gas. Imagine if the ground blocks of the mushroom biome for example emitted a gas (liquid going the opposite direction), tint the screen green or something, make you lose life, requires a gas mask type helmet to be crafted and worn in order to move around there safely. Or the ability to make gas grenades, or heavy fog in the morning in some biomes that would slow movement and limit visibility. Would be so many things we could do...