All text in the chat window does not fade out correctly.
In earlier versions (e.g.1.6) the text would fade out smoothly.
In 1.7 the text begins to fade out as usual, but then disappears quite abruptly. I do not think this is intentional.
1. open minecraft in 1.6 and simply say anything with "/say"
2. do the same in 1.7 and notice the difference.