Play your files. If everything works to your satisfaction, don’t update the firmware. ;)
I’m using the latest firmware (1.02.21) but I’m a reckless tinkerer. For me (and others), it works great. It’s not perfect but I can play all my files (mixture of 720p MP4 and MKVs, along with some older AVI files) with minimal adjustments needed.
Still, others claim it breaks everything, which I find hard to believe but there you go. So many different network setups out there, can’t really make any guarantees.
If you do upgrade and wish to revert back to earlier firmware, it’s possible to do so. Don’t worry about getting stuck with a broken firmware.
Oh, and my recommendation is to update via USB. I’ve never had any issues doing so.
Good luck, and welcome to the forum. :)