Originally Posted by jusmee
I believe it WAS designed to be updated manually. How else could they beta test?
While it may be built to allow manual installation, that also takes out what may be important steps in the upgrade process. There have been major changes to the database structure since the touch first came out and the automated update process would have a better chance of making sure everything updates correctly than dropping a hugely different version on it. I have seen it do a two stage update (download, update, then restart go thru update with no additional download) before (it was updating the database structure in this case I believe).
It's not a supported way of doing things so if it works for you great, but you can't really blame Kobo if it doesn't. And as ottdmk said, if you're beta testing you know there is potential that things are going to be broken in the build or that it may cook you database and force you to factory reset.