I know this is the result of a bug fix rather than a bug: I used to be able to remove inconvenient bushes (to be able to build in their place) by placing a flower bed over them and then destroying it once it was built. Granted, this was possibly an unintended side-effect, and only worked with one type of bush (the big, round, dark green one) but it worked very well for me - and other people who either like a nice, ordered island or have ran out of space to build.
So I propose you consider bringing it back as a feature. I don't even mind if I have to buy some super special land-clearing "building" for it (one that you put down from the star, then it clears the area the same way the flowerbed used to and, as a bonus, it immediately picks itself up and goes back in the star once it's done). Because it's a lot more feasible to cut out shrubbery than to blow up mountains, right?