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Is there something like insane that you didn't expect to be added in say the last 4 years?
Edit: I usually play without any mods, vanilla is perfectly fine as it is, it's up to you though
You can see more about it here https://forums.terraria.org/index.php?threads/there-back-again-a-summary-of-journeys-end.87997/
In 2022 they released another huge update , the labor of love update (after terraria won the labor of love steam award in 2021 thanks to the Journey's end update) https://forums.terraria.org/index.php?threads/terraria-labor-of-love-is-out-now.114357/
Sadly the Labor of love update brought with it the merch , and the merch has not stopped , now we get more updates about "buy this merch" than we do actual game patches , they have been working on a promised update/crossover with dead cells since 2022 , every year we hear that this is the year it is released and it never is (this year for sure).
But even though they went downhill fast after the labor of love update the stuff added by it and the journey's end update are all still very good and worth checking out If you haven't played since 2017, there are many new things to discover but you might not find them all without a guide of some sort.
If you want to do it without help I would suggest looking at the in game quest log and aiming for the achievements , they will give you an idea of what new things are added.
I'd say that the most notable updates you've missed are:
Edit: As for your followup question, I recommend playing vanilla. The only mod you might want is Magic Storage, if you're very lazy about organizing your storage chests. I don't think it's necessary, though, personally.