It has been a while since I took pictures, but the grass has filled in nicely to the water line in most spots. Erosion does not appear to be a problem. There were two spots on the south bank where a significant amount of watershed was causing erosion so I built a treated lumber bulk head and back filled with concrete at each location. I have not had any issues since.
The tree on the island is a live oak that has filled out nicely since the pond filled and seems to be enjoying the water. The base of the tree is about 24" above the waterline at full pool. I have many more, some much larger, live oaks on the property and some are exposed to more water than this one with no problems.