That’s really up to you… I was using a WDTV Gen 1 with several drives and got tired of walking back and forth from computer room to living room. It’s really a question of convenience over speed… Connected direcly to hub is thru USB so it will be faster than transferring through network then onto hub internal or hub usb connected drive.
I just set and forget it. Just transferred over 100GB of movies thru network, took 5 hours, and at the same time watched a movie off of the same drive i was tranferring the files to.
Syncing is when you copy content from usb connected drive onto the Live Hub itself…
and as for the firmware upgrades… it depends on what was updated / changed in the firmware. If there was a Major Change/Bug fixed then - yes.
If there just minor tweaks or unsure of changes then I advise - no