I forced updated mine manually, and so far, I have not had issues with the Physical Keyboard not lighting up. I also did as you suggested, which was powering it down completely and power it back up and the keyboard still lights up.
The only time I saw it 'flickering' is due to Locale flipping my wallpaper during the beginning, but afterwards, it still comes up without an issue. So I don't know what to say why it seems to be a problem for you guys.
The only time I saw it 'flickering' is due to Locale flipping my wallpaper during the beginning, but afterwards, it still comes up without an issue. So I don't know what to say why it seems to be a problem for you guys.