For my part, I just did the update, and Swype simply would not work. I'm very familiar with the bug mentioned and switching the input method to get it to fire up again, but this time, despite repeated attempts, reboots, etc. it simply would not go and I had to completely reinstall.
The good news is that this is only the second install I have made, and it is working fine after that, but I do agree with the comments to not uninstall/reinstall unless absolutely necessary (which, in my case, it seemed to be).