No actual ocean appearing in ocean only world

Instead of a water world you get sand everywhere (warm_ocean) with the odd river and lake

What I expected to happen was...:
That there would be more water and the world be flooded, except for maybe the odd sand bank{}

What actually happened was...:
There is not a lot of water, ships are inland and so are other structures that you'd expect to be submerged.

Steps to Reproduce:
1. Go to the create world menu
2. Choose warm ocean
3. Create world