As far as I'm concerned there is no downside to upgrading if you have CIOS, DVDX and HBC installed beforehand. Am I right? I can't see a single reason to not upgrade.
You can only run official Nintendo downloaded content from the SD Card, but you couldn't run anything from it before, so nothing lost.
I hope that there will be a way to transfer homebrew wad's to the sd card in the future as 512mb is really quite limiting!
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