Was getting nagged every hour to upgrade yesterday, but I figured it would fail because I have renamed a bunch of stock apps and I didn't have the time to spend for a successful upgrade.
Last night, the nagging worked, I tried an upgrade, it failed... but after rebooting back to the 'old' version the nagging stopped, yay!
So today I renamed the stock apps back to original names, tried OTA RootKeeper mentioned above (just in case), upgraded successfully, restored root via OTA RK, renamed the useless apps again and all is OK so far.
The keyboard backlight does seem much improved to me. It no longer cycles on/off so quickly if the ambient light is changing a bit. Now it seems to take a longer period of 'darkness' to trigger the keyboard backlight.