Still absolutely busted. Wild that this is "illusion magic" when it's basically reality warping that physically changes the terrain. Even if the DM doesn't rule that the illusory terrain can deal damage or that illusory water can't drown someone, it still lets you create an entire maze or building and reshape the entire landscape around you just casually.

Also, unlike its legacy counterpart, it doesn't even specify that the terrain has to remain the same shape.

 When this says "A pond can be made to seem like a grassy meadow", including "tactile" elements, does that mean that you can walk right over it? Or just that it will feel to you like you're walking right over it while really you've fallen into the pond and are drowning?

Can an illusionist kill an entire village just by making the entire area "seem like" it's underwater?

Similarly, if a rock-strewn gully is made to seem like a wide and smooth road, does that mean that creatures affected by the illusion can literally walk right through the rocks in the gully as though it were open road? Or do they still bump into them, but they just don't feel it somehow and think they've continued onwards?

You will just walk over it. For all intents and purposes, you are walking on solid ground. The omission of following the "terrain's general shape", is to avoid the situation of having the illusion going underneath the water and making that area 'not underwater'. For obvious reasons, dispelling the illusion while an enemy is at the bottom of what used to be a lake, was far too abusable. 

Since you can't conceal a creature, that would rule out fully submerging an entire active village. Though that's not to say you can't make the water flow through the village as if there was a minor flooding, but only as long as it doesn't conceal what D&D would consider a creature. You'll end up with an angry village suffering from a surgency of one-foot-deep water.

I'm personally interpreting the spell as if you're just taking and laying a massive Green Screen Blanket over the spell's effective area (safely phasing through Creatures/Structures) and you're changing that to be the terrain you desire. So, you'll be walking through a rocky gully as if it was an open road, because YOU ARE walking on an open road.

Calling this "broken" is an overstatement, imo. If a spell does not expressly say it can damage or kill a creature, then it cannot. So no, you can't use it to drown an area or surround it with red-hot lava anymore than you can use Create Water to drown someone by "creating the water in their lungs". Walking on water is about the extent of it truly altering how you can interact with terrain, which itself is a far lower level spell so it's hardly gamebreaking to be included here. 

As for creating a maze and otherwise reshaping terrain, this is a 7th level spell. That's rather the point.

Quote from The_Ace_of_Rogues >>

Calling this "broken" is an overstatement, imo. If a spell does not expressly say it can damage or kill a creature, then it cannot. So no, you can't use it to drown an area or surround it with red-hot lava anymore than you can use Create Water to drown someone by "creating the water in their lungs". Walking on water is about the extent of it truly altering how you can interact with terrain, which itself is a far lower level spell so it's hardly gamebreaking to be included here. 

As for creating a maze and otherwise reshaping terrain, this is a 7th level spell. That's rather the point.

The spell doesn't say that it can't do damage. What you describe is just your home rule, there is no need to impose it on others.