[O] Bug in behavior of M-RET with latest Org-mode

[John Wiegley]

In Org I've liked that fact that hitting M-RET in a list of headlines which
have no intervening whitespace, will add a new headline without whitespace.
Example:

    * One
    * Two<cursor>
    * Three

If hit M-RET at the <cursor>, I'll would get:

    * One
    * Two
    * <cursor>
    * Three

With the latest Org, I get:

    * One
    * Two
    * <cursor>

    * Three

Is this just a regression, or has the core behavior been changed to do this?
Is there a new variable I need to tweak to get the old behavior?

Thanks! John