Index: wp-includes/default-filters.php
===================================================================
--- wp-includes/default-filters.php	(revision 15238)
+++ wp-includes/default-filters.php	(working copy)
@@ -235,7 +235,7 @@
 add_action( 'untrash_post',               '_wp_untrash_menu_item'          );
 add_action( 'delete_post',                '_wp_delete_post_menu_item'      );
 add_action( 'delete_term',                '_wp_delete_tax_menu_item'       );
-add_action( 'transition_post_status', '_wp_menu_changing_status_observer',  10, 3 );
+add_action( 'transition_post_status', '_wp_auto_add_pages_to_menu',  10, 3 );
 
 // Post Thumbnail CSS class filtering
 add_action( 'begin_fetch_post_thumbnail_html', '_wp_post_thumbnail_class_filter_add'    );
Index: wp-includes/nav-menu.php
===================================================================
--- wp-includes/nav-menu.php	(revision 15238)
+++ wp-includes/nav-menu.php	(working copy)
@@ -244,7 +244,7 @@
  *
  * @since 3.0.0
  *
- * @param int $menu_id The ID of the menu. Required. If "0", makes the menu item a pending orphan.
+ * @param int $menu_id The ID of the menu. Required. If "0", makes the menu item a draft orphan.
  * @param int $menu_item_db_id The ID of the menu item. If "0", creates a new menu item.
  * @param array $menu_item_data The menu item's data.
  * @return int The menu item's database ID or WP_Error object on failure.
@@ -262,7 +262,7 @@
 	if ( ( ! $menu && 0 !== $menu_id ) || is_wp_error( $menu ) )
 		return $menu;
 
-	$menu_items = 0 == $menu_id ? array() : (array) wp_get_nav_menu_items( $menu_id, array( 'post_status' => 'draft,pending,publish' ) );
+	$menu_items = 0 == $menu_id ? array() : (array) wp_get_nav_menu_items( $menu_id, array( 'post_status' => 'publish,draft' ) );
 
 	$count = count( $menu_items );
 
@@ -339,10 +339,10 @@
 	if ( 0 != $menu_id )
 		$post['tax_input'] = array( 'nav_menu' => array( intval( $menu->term_id ) ) );
 
-	// New menu item. Default is pending status
+	// New menu item. Default is draft status
 	if ( 0 == $menu_item_db_id ) {
 		$post['ID'] = 0;
-		$post['post_status'] = 'publish' == $args['menu-item-status'] ? 'publish' : 'pending';
+		$post['post_status'] = 'publish' == $args['menu-item-status'] ? 'publish' : 'draft';
 		$menu_item_db_id = wp_insert_post( $post );
 
 	// Update existing menu item. Default is publish status
@@ -497,7 +497,10 @@
 		unset($terms);
 	}
 
-	$items = array_map( 'wp_setup_nav_menu_item', $items );
+	if ( 'publish' == $args['post_status'] )
+		$items = array_filter( array_map( 'wp_setup_nav_menu_item', $items, true ) );
+	else
+		$items = array_map( 'wp_setup_nav_menu_item', $items );
 
 	if ( ARRAY_A == $args['output'] ) {
 		$GLOBALS['_menu_item_sort_prop'] = $args['output_key'];
@@ -535,7 +538,7 @@
  * @param object $menu_item The menu item to modify.
  * @return object $menu_item The menu item with standard menu item properties.
  */
-function wp_setup_nav_menu_item( $menu_item ) {
+function wp_setup_nav_menu_item( $menu_item, $published_post_only = false ) {
 	if ( isset( $menu_item->post_type ) ) {
 		if ( 'nav_menu_item' == $menu_item->post_type ) {
 			$menu_item->db_id = (int) $menu_item->ID;
@@ -545,11 +548,14 @@
 			$menu_item->type = empty( $menu_item->type ) ? get_post_meta( $menu_item->ID, '_menu_item_type', true ) : $menu_item->type;
 
 			if ( 'post_type' == $menu_item->type ) {
+				$original_object = get_post( $menu_item->object_id );
+				if ( $published_post_only && $original_object->post_status != 'publish' )
+					return null;
+
 				$object = get_post_type_object( $menu_item->object );
 				$menu_item->type_label = $object->labels->singular_name;
 				$menu_item->url = get_permalink( $menu_item->object_id );
 
-				$original_object = get_post( $menu_item->object_id );
 				$original_title = $original_object->post_title;
 				$menu_item->title = '' == $menu_item->post_title ? $original_title : $menu_item->post_title;
 
@@ -670,7 +676,7 @@
 
 	foreach( (array) $menu_item_ids as $menu_item_id ) {
 		$menu_item = get_post( $menu_item_id, ARRAY_A );
-		$menu_item['post_status'] = 'pending';
+		$menu_item['post_status'] = 'draft';
 		wp_insert_post($menu_item);
 	}
 }
@@ -735,7 +741,7 @@
 }
 
 /**
- * Modify a navigational menu upon post object status change, if appropos.
+ * Automatically add newly published page objects to menus with that as an option.
  *
  * @since 3.0.0
  * @access private
Index: wp-admin/includes/nav-menu.php
===================================================================
--- wp-admin/includes/nav-menu.php	(revision 15238)
+++ wp-admin/includes/nav-menu.php	(working copy)
@@ -71,12 +71,8 @@
 		$title = $item->title;
 
 		if ( isset( $item->post_status ) && 'draft' == $item->post_status ) {
-			$classes[] = 'draft';
-			/* translators: %s: title of menu item in draft status */
-			$title = sprintf( __('%s (Draft)'), $item->title );
-		} elseif ( isset( $item->post_status ) && 'pending' == $item->post_status ) {
 			$classes[] = 'pending';
-			/* translators: %s: title of menu item in pending status */
+			/* translators: %s: title of menu item in draft status */
 			$title = sprintf( __('%s (Pending)'), $item->title );
 		}
 
@@ -198,7 +194,6 @@
 				<input class="menu-item-data-object" type="hidden" name="menu-item-object[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->object ); ?>" />
 				<input class="menu-item-data-parent-id" type="hidden" name="menu-item-parent-id[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->menu_item_parent ); ?>" />
 				<input class="menu-item-data-position" type="hidden" name="menu-item-position[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->menu_order ); ?>" />
-				<input class="menu-item-data-status" type="hidden" name="menu-item-status[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->post_status ); ?>" />
 				<input class="menu-item-data-type" type="hidden" name="menu-item-type[<?php echo $item_id; ?>]" value="<?php echo esc_attr( $item->type ); ?>" />
 			</div><!-- .menu-item-settings-->
 			<ul class="menu-item-transport"></ul>
@@ -952,7 +947,7 @@
  *
  * @since 3.0.0
  *
- * @param int $menu_id The menu ID for which to save this item. $menu_id of 0 makes a pending, orphaned menu item.
+ * @param int $menu_id The menu ID for which to save this item. $menu_id of 0 makes a draft, orphaned menu item.
  * @param array $menu_data The unsanitized posted menu item data.
  * @return array The database IDs of the items saved
  */
@@ -1084,7 +1079,7 @@
 
 		$some_pending_menu_items = false;
 		foreach( (array) $menu_items as $menu_item ) {
-			if ( isset( $menu_item->post_status ) && 'pending' == $menu_item->post_status )
+			if ( isset( $menu_item->post_status ) && 'draft' == $menu_item->post_status )
 				$some_pending_menu_items = true;
 		}
 
@@ -1122,23 +1117,23 @@
 }
 
 /**
- * Deletes orphaned pending menu items
+ * Deletes orphaned draft menu items
  *
  * @access private
  * @since 3.0.0
  *
  */
-function _wp_delete_orphaned_pending_menu_items() {
+function _wp_delete_orphaned_draft_menu_items() {
 	global $wpdb;
 	$delete_timestamp = time() - (60*60*24*EMPTY_TRASH_DAYS);
 
-	// delete orphaned pending menu items
-	$menu_items_to_delete = $wpdb->get_col($wpdb->prepare("SELECT ID FROM $wpdb->posts AS p LEFT JOIN $wpdb->postmeta AS m ON p.ID = m.post_id WHERE post_type = 'nav_menu_item' AND post_status = 'pending' AND meta_key = '_menu_item_orphaned' AND meta_value < '%d'", $delete_timestamp ) );
+	// delete orphaned draft menu items
+	$menu_items_to_delete = $wpdb->get_col($wpdb->prepare("SELECT ID FROM $wpdb->posts AS p LEFT JOIN $wpdb->postmeta AS m ON p.ID = m.post_id WHERE post_type = 'nav_menu_item' AND post_status = 'draft' AND meta_key = '_menu_item_orphaned' AND meta_value < '%d'", $delete_timestamp ) );
 
 	foreach( (array) $menu_items_to_delete as $menu_item_id )
 		wp_delete_post( $menu_item_id, true );
 }
 
-add_action('admin_head-nav-menus.php', '_wp_delete_orphaned_pending_menu_items');
+add_action('admin_head-nav-menus.php', '_wp_delete_orphaned_draft_menu_items');
 
 ?>
Index: wp-admin/nav-menus.php
===================================================================
--- wp-admin/nav-menus.php	(revision 15238)
+++ wp-admin/nav-menus.php	(working copy)
@@ -327,13 +327,13 @@
 			// Update menu items
 
 			if ( ! is_wp_error( $_menu_object ) ) {
-				$unsorted_menu_items = wp_get_nav_menu_items( $nav_menu_selected_id, array('orderby' => 'ID', 'output' => ARRAY_A, 'output_key' => 'ID', 'post_status' => 'draft,pending,publish') );
+				$unsorted_menu_items = wp_get_nav_menu_items( $nav_menu_selected_id, array('orderby' => 'ID', 'output' => ARRAY_A, 'output_key' => 'ID', 'post_status' => 'draft,publish') );
 				$menu_items = array();
 				// Index menu items by db ID
 				foreach( $unsorted_menu_items as $_item )
 					$menu_items[$_item->db_id] = $_item;
 
-				$post_fields = array( 'menu-item-db-id', 'menu-item-object-id', 'menu-item-object', 'menu-item-parent-id', 'menu-item-position', 'menu-item-type', 'menu-item-title', 'menu-item-url', 'menu-item-description', 'menu-item-attr-title', 'menu-item-status', 'menu-item-target', 'menu-item-classes', 'menu-item-xfn' );
+				$post_fields = array( 'menu-item-db-id', 'menu-item-object-id', 'menu-item-object', 'menu-item-parent-id', 'menu-item-position', 'menu-item-type', 'menu-item-title', 'menu-item-url', 'menu-item-description', 'menu-item-attr-title', 'menu-item-target', 'menu-item-classes', 'menu-item-xfn' );
 				wp_defer_term_counting(true);
 				// Loop through all the menu items' POST variables
 				if ( ! empty( $_POST['menu-item-db-id'] ) ) {