If you have normal haxchi, you don't need to reinstall it.
If you have coldboot haxchi, yes, you will have to reinstall it.
There is NO homebrew to update the system.
Also, there is NO problem in updating... and there is NO benefit in updating too!

 

Hello,

@Exist2Resist :

Myself, I went from 5.5.2 to 5.5.4 with standard haxchi, and no worries. (If you can rest assured)

 

Why not? More stability to improve the user experience xD

 

I think the update is better for two reasons:
1) with 5.5.4 or 5.5.3 in Usa, you get able to access to the eshop without a patch, that allows to update the games that you install with Wup Installer too.
2) In case that you want Coldboot Haxchi for not needing the gamepad eevery time you wanna play and run haxchi, then it´s better to install Haxchi, then update, and finally install the Coldboot.