So when I tried the code from the OP in version 10.3, I get the error message
Graphics`PolygonUtils`PolygonCombine is not a Graphics primitive or
directive.
while in version 9 it returns this image

So it is natural to assume that the undocumented function is the culprit, and WRI just removed it without saying anything, which is their prerogative. But I think the issue is with the GeoPosition polygons instead.
Let's look at the representation of the polygons in version 10.3,
CountryData["Germany", "FullPolygon"]

and compare it to the same thing in version 9,
CountryData["Germany", "FullPolygon"]
(* Polygon[{{{7.24916, 53.3298}, {6.99916, 53.359}, ...
.... {8.59249, 54.5073}}}] *)
So now there is some sort of internal gray box between us and the polygon coordinates, and it seems to be confusing the PolygonCombine function. (Thanks to SquareOne for making this easier) You can convert it to a normal Polygon via
Polygon @@ First@CountryData["Germany", "FullPolygon"]
(* Polygon[{{{53.3298, 7.24916}, {53.359, 6.99916},
......{54.5073, 8.59249}}}] *)
But the x and y coordinates have been reversed. For some reason, GeoPosition seems to tell Polygon to swap the coordinates. For this I'll Map Reverse to the second-deepest level of the polygon.
Polygon @@ First@CountryData["Germany", "FullPolygon"] //
Map[Reverse, #, {-2}] & // Graphics

Of course you get the exact same output if you use CountryData["Germany", "FullPolygon"], but it is not a normal polygon. Just try Cases[CountryData["Germany", "FullPolygon"] // Graphics, Polygon[_]] to see this.
It's pretty easy to apply this to the world list, just adding one line to the code in the OP
Graphics`Mesh`MeshInit[];
world = CountryData[#, "FullPolygon"] & /@ CountryData["Continents"] //
Flatten;
world = Map[Reverse, #, {-2}] &@*Polygon @@@ world[[All, 1]];
worldplot =
Graphics[{FaceForm[White], EdgeForm[Black], PolygonCombine@world} /.
Polygon -> Line, Frame -> True,
FrameLabel -> {"Longitude", "Latitude"}, ImageSize -> 600]

SquareOne pointed out that you could skip the Map step and use the fact that GeoPosition inverts the coordinates to your advantage by replacing PolygonCombine@world with Polygon[GeoPosition[#]] & @@ (PolygonCombine[ Polygon @@@ world[[All, 1]]]) This does result in a slightly shorter code (by 6 bytes :-P), but I prefer the Map method for clarity and because it seems to run faster without the extra step of reusing GeoPosition.
To get the map without Antarctica (who needs it!!), we use this
world = CountryData[#, "FullPolygon"] & /@
Cases[CountryData["Continents"],
Except[EntityClass["Country", "Antarctica"]]] // Flatten;
world = Map[Reverse, #, {-2}] &@*Polygon @@@ world[[All, 1]];
worldplot =
Graphics[{FaceForm[White], EdgeForm[Black], PolygonCombine@world} /.
Polygon -> Line, Frame -> True,
FrameLabel -> {"Longitude", "Latitude"}, ImageSize -> 600]

RegionPlot[world] /. Polygon->Line? – SquareOne Mar 24 '16 at 10:49PolygonCombine@from your code, I get this - what do you want that is different from that? – Jason B. Mar 24 '16 at 10:49?*`*PolygonCombine– J. M.'s missing motivation Mar 24 '16 at 10:53PolygonCombineshould actually remove the internal borders ! See this – SquareOne Mar 24 '16 at 11:07BoundaryMeshRegionout of it and go from there. I started withDiscretizeGraphics@Graphics@world- and then my computer started thinking so hard it was unresponsive and I had to restart. So, um, don't try that – Jason B. Mar 24 '16 at 11:10PolygonCombine, but rather with the representation of the polygons. If you have version 10.4, try replacing the definition ofworldabove withworld = << "https://www.dropbox.com/s/nl5w33qr9ppfedi/world.txt?dl=1";and see if that fixes the problem. – Jason B. Mar 24 '16 at 11:39world. So thePolygon[GeoPosition[...]]form seems not to work anymore inPolygonCombine? – SquareOne Mar 24 '16 at 12:17CountryDatahas changed in version 10. You can get what you want by applyingCanonicalNamelike in this code – Jason B. Mar 24 '16 at 15:26