There are actually two calls of ${_UPDATE_WAIT} ( = /usr/sbin/updatewait ) in that script.
The first call is in a branch that is executed when process_update is called with -i option (and the same option is passed to updatewait). -i means 'immediately' in this case and I believe this is how process_update is called from the framework when you select 'Update your Kindle' menu item.
The second call doesn't contain any options and in such case updatewait just sits there and waits for an idle state ( = screensaver). Then it does its dirty work - applies update without user intervention.
And exactly this second call gets commented out (not deleted) after installing this hack. Of course, a backup copy is made beforehand.
Uninstalling disable-updates hack just restores the original file from the backup.
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