I haven't had a chance to play .77 yet, but I didn't see a change to this in the changelog.
Outposts currently don't have a raze or upgrade (to city) option. Really it is just a crutch, but I was careless and built an outpost where I wanted a city, then I couldn't change it..... or remove the outpost.....
From a gameplay perspective, I'd prefer just the raze option for outposts, as otherwise late game I could see people just upgrading every outpost to a fully blown city.