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Nope, I think you are wrong, I believe this update means you can no longer update the firmware, hence the cut needed AFTER updating.
R4 teams "solution" is just to bring out yet another hardware revision, you may as well just buy a DStwo, because after buying 2 or more R4 cards, you might as well have just bought a DStwo in the first place, I know that's what I'll be doing when I want to update my 3DSXL.
Quick thought for hardware modders like myself who have done this sort of thing before, if you use a fiber brush and cut the line cleanly, surely you can update the chip later on by soldering the line back together briefly and updating in a DSL? then de-soldering and popping back in a 3DS? Just a thought.
the team says they have other methods,
prying for more info on the statement tho