Index: wp-includes/default-filters.php
===================================================================
--- wp-includes/default-filters.php	(revision 15242)
+++ wp-includes/default-filters.php	(working copy)
@@ -231,11 +231,9 @@
 add_action( 'wp_scheduled_delete',        'wp_scheduled_delete'            );
 
 // Navigation menu actions
-add_action( 'trash_post',                 '_wp_trash_menu_item'            );
-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-template.php
===================================================================
--- wp-includes/nav-menu-template.php	(revision 15242)
+++ wp-includes/nav-menu-template.php	(working copy)
@@ -151,7 +151,7 @@
 	if ( ! $menu && !$args->theme_location ) {
 		$menus = wp_get_nav_menus();
 		foreach ( $menus as $menu_maybe ) {
-			if ( $menu_items = wp_get_nav_menu_items($menu_maybe->term_id) ) {
+			if ( $menu_items = wp_get_nav_menu_items($menu_maybe->term_id, array( 'public' => true ) ) ) {
 				$menu = $menu_maybe;
 				break;
 			}
@@ -160,7 +160,7 @@
 
 	// If the menu exists, get its items.
 	if ( $menu && ! is_wp_error($menu) && !isset($menu_items) )
-		$menu_items = wp_get_nav_menu_items( $menu->term_id );
+		$menu_items = wp_get_nav_menu_items( $menu->term_id, array( 'public' => true ) );
 
 	// If no menu was found or if the menu has no items and no location was requested, call the fallback_cb if it exists
 	if ( ( !$menu || is_wp_error($menu) || ( isset($menu_items) && empty($menu_items) && !$args->theme_location ) )
Index: wp-includes/nav-menu.php
===================================================================
--- wp-includes/nav-menu.php	(revision 15242)
+++ 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 );
 
@@ -311,9 +311,6 @@
 			$original_object = get_post( $args['menu-item-object-id'] );
 			$original_parent = (int) $original_object->post_parent;
 			$original_title = $original_object->post_title;
-
-			if ( 'trash' == get_post_status( $args['menu-item-object-id'] ) )
-				return new WP_Error('update_nav_menu_item_failed', sprintf(__('The menu item "%1$s" belongs to something that is in the trash, so it cannot be updated.'), $args['menu-item-title'] ) );
 		}
 
 		if ( empty( $args['menu-item-title'] ) || $args['menu-item-title'] == $original_title ) {
@@ -339,10 +336,10 @@
 	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
@@ -454,8 +451,10 @@
 
 	$defaults = array( 'order' => 'ASC', 'orderby' => 'menu_order', 'post_type' => 'nav_menu_item',
 		'post_status' => 'publish', 'output' => ARRAY_A, 'output_key' => 'menu_order', 'nopaging' => true,
-		'update_post_term_cache' => false );
+		'update_post_term_cache' => false, 'public' => false );
 	$args = wp_parse_args( $args, $defaults );
+	$public_consumption = $args['public'];
+	unset( $args['public'] );
 	if ( count( $items ) > 1 )
 		$args['include'] = implode( ',', $items );
 	else
@@ -497,7 +496,10 @@
 		unset($terms);
 	}
 
-	$items = array_map( 'wp_setup_nav_menu_item', $items );
+	if ( $public_consumption )
+		$items = array_filter( array_map( 'wp_setup_nav_menu_item_published', $items ) );
+	else
+		$items = array_map( 'wp_setup_nav_menu_item', $items );
 
 	if ( ARRAY_A == $args['output'] ) {
 		$GLOBALS['_menu_item_sort_prop'] = $args['output_key'];
@@ -512,6 +514,16 @@
 }
 
 /**
+ * Callback that wraps wp_setup_nav_menu_item() to ensure only published posts are shown publicly.
+ *
+ * @uses wp_setup_nav_menu_item()
+ * @since 3.0.0
+ */
+function wp_setup_nav_menu_item_published( $menu_item ) {
+	return wp_setup_nav_menu_item( $menu_item, array( 'post_object_status' => 'publish' ) );
+}
+
+/**
  * Decorates a menu item object with the shared navigation menu item properties.
  *
  * Properties:
@@ -533,9 +545,13 @@
  * @since 3.0.0
  *
  * @param object $menu_item The menu item to modify.
+ * @param array $args
  * @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, $args = array() ) {
+	$defaults = array( 'post_object_status' => 'any' );
+	$args = wp_parse_args( $args, $defaults );
+
 	if ( isset( $menu_item->post_type ) ) {
 		if ( 'nav_menu_item' == $menu_item->post_type ) {
 			$menu_item->db_id = (int) $menu_item->ID;
@@ -545,11 +561,14 @@
 			$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 ( 'publish' == $args['post_object_status'] && $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;
 
@@ -655,48 +674,6 @@
 }
 
 /**
- * Callback for handling a menu item when its original object is trashed.
- *
- * @since 3.0.0
- * @access private
- *
- * @param int $object_id The ID of the original object being trashed.
- *
- */
-function _wp_trash_menu_item( $object_id = 0 ) {
-	$object_id = (int) $object_id;
-
-	$menu_item_ids = wp_get_associated_nav_menu_items( $object_id );
-
-	foreach( (array) $menu_item_ids as $menu_item_id ) {
-		$menu_item = get_post( $menu_item_id, ARRAY_A );
-		$menu_item['post_status'] = 'pending';
-		wp_insert_post($menu_item);
-	}
-}
-
-/**
- * Callback for handling a menu item when its original object is un-trashed.
- *
- * @since 3.0.0
- * @access private
- *
- * @param int $object_id The ID of the original object being untrashed.
- *
- */
-function _wp_untrash_menu_item( $object_id = 0 ) {
-	$object_id = (int) $object_id;
-
-	$menu_item_ids = wp_get_associated_nav_menu_items( $object_id );
-
-	foreach( (array) $menu_item_ids as $menu_item_id ) {
-		$menu_item = get_post( $menu_item_id, ARRAY_A );
-		$menu_item['post_status'] = 'publish';
-		wp_insert_post($menu_item);
-	}
-}
-
-/**
  * Callback for handling a menu item when its original object is deleted.
  *
  * @since 3.0.0
@@ -735,7 +712,7 @@
 }
 
 /**
- * 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
@@ -745,62 +722,34 @@
  * @param object $post The post object being transitioned from one status to another.
  * @return void
  */
-function _wp_menu_changing_status_observer( $new_status, $old_status, $post ) {
-	// append new top-level page objects to a menu for which that option is selected
-	if (
-		'publish' == $new_status &&
-		'publish' != $old_status &&
-		'page' == $post->post_type &&
-		empty( $post->post_parent )
-	) {
-		$auto_add = get_option( 'nav_menu_options' );
-		if (
-			isset( $auto_add['auto_add'] ) &&
-			is_array( $auto_add['auto_add'] )
-		) {
-			$args = array(
-				'menu-item-object-id' => $post->ID,
-				'menu-item-object' => $post->post_type,
-				'menu-item-type' => 'post_type',
-				'menu-item-status' => 'publish',
-			);
+function _wp_auto_add_pages_to_menu( $new_status, $old_status, $post ) {
+	if ( 'publish' != $new_status || 'publish' == $old_status || 'page' != $post->post_type )
+		return;
+	if ( ! empty( $post->post_parent ) )
+		return;
+	$auto_add = get_option( 'nav_menu_options' );
+	if ( empty( $auto_add ) || ! is_array( $auto_add ) || ! isset( $auto_add['auto_add'] ) )
+		return;
+	$auto_add = $auto_add['auto_add'];
+	if ( empty( $auto_add ) || ! is_array( $auto_add ) )
+		return;
 
-			foreach ( $auto_add['auto_add'] as $menu_id ) {
-				$items = wp_get_nav_menu_items( $menu_id, array( 'post_status' => 'draft,pending,publish' ) );
-				if ( ! is_array( $items ) )
-					continue;
-				foreach ( $items as $item ) {
-					if ( $post->ID == $item->object_id )
-						continue 2;
-				}
-				wp_update_nav_menu_item( $menu_id, 0, $args );
-			}
-		}
-	}
+	$args = array(
+		'menu-item-object-id' => $post->ID,
+		'menu-item-object' => $post->post_type,
+		'menu-item-type' => 'post_type',
+		'menu-item-status' => 'publish',
+	);
 
-	// give menu items draft status if their associated post objects change from "publish" to "draft", or vice versa (draft item being re-published)
-	if (
-		! empty( $post->ID ) &&
-		(
-			( 'publish' == $old_status && 'draft' == $new_status ) ||
-			( 'draft' == $old_status && 'publish' == $new_status )
-		)
-	) {
-		$menu_items = get_posts(array(
-			'meta_key' => '_menu_item_object_id',
-			'meta_value' => $post->ID,
-			'post_status' => 'any',
-			'post_type' => 'nav_menu_item',
-		));
-
-		foreach( (array) $menu_items as $menu_item ) {
-			if ( ! empty( $menu_item->ID ) ) {
-				$properties = get_object_vars( $menu_item );
-				$properties['post_status'] = $new_status;
-
-				wp_insert_post( $properties );
-			}
+	foreach ( $auto_add as $menu_id ) {
+		$items = wp_get_nav_menu_items( $menu_id, array( 'post_status' => 'publish,draft' ) );
+		if ( ! is_array( $items ) )
+			continue;
+		foreach ( $items as $item ) {
+			if ( $post->ID == $item->object_id )
+				continue 2;
 		}
+		wp_update_nav_menu_item( $menu_id, 0, $args );
 	}
 }
 
Index: wp-admin/includes/nav-menu.php
===================================================================
--- wp-admin/includes/nav-menu.php	(revision 15242)
+++ wp-admin/includes/nav-menu.php	(working copy)
@@ -71,13 +71,14 @@
 		$title = $item->title;
 
 		if ( isset( $item->post_status ) && 'draft' == $item->post_status ) {
-			$classes[] = 'draft';
+			$classes[] = 'unsaved';
 			/* 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 */
-			$title = sprintf( __('%s (Pending)'), $item->title );
+			$title = sprintf( __('%s (Unsaved)'), $item->title );
+		} elseif ( 'post_type' == $item->type && $original_object->post_status != 'publish' ) {
+			$classes[] = 'unpublished-post';
+			$original_status = get_post_status_object( $original_object->post_status );
+			/* translators: 1: title of menu item in unpublished status, 2: actual post status. */
+			$title = sprintf( __('%1$s (%2$s)'), $item->title, $original_status->label );
 		}
 
 		$title = empty( $item->label ) ? $title : $item->label;
@@ -198,7 +199,6 @@
 				<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 +952,7 @@
  *
  * @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 +1084,7 @@
 
 		$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 +1122,23 @@
 }
 
 /**
- * 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 15242)
+++ 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'] ) ) {
