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In short, I don't know for sure. I heard that it will not update. In my case, I tried several times to manually update it without restoring to factory defaults and it silently deleted the update and did nothing. That's not to say that it might not waste battery life trying to repeated download the update before it deletes, though.
I would recommend 1.10 when/if you have time to get to it. Screen changes are noticeably faster in all areas of the system, not just in reading. Lucky for me I haven't had my nook for long, otherwise I would have been reluctant to start from scratch. I'm in the same boat as you with my rooted cell phone -- it's not worth the hassle to update.
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