The game, including worldgen, will still bug out at longer distances - the issues were reduced and a world limit was added to prevent you going too far, and IIRC past a certain point the world turns into non-stop ocean, but I'm pretty sure if you bypass those limits you'll encounter chunks that outright fail to generate.

OK, I have not played it for AGES. Nice to see something like that fixed, as it was a bit system-inherent.