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The new update has not fixed the "sleep of death" issue on my kobo either. I am noticing now it is locking up in the lock screen and requires a full power off. This is very frustrating, but I understand the Kobo team is probably working on a fix for it. I have set the wifi sleep policy to "never" but this hasn't fixed the sleep of death problem in this version of the firmware.
I would like to say that I am VERY impressed with the responsiveness of the new firmware, and have noticed the following improvements:
1) Increased responsiveness in operating system
2) Reads the touchscreen much better (only have to press once on an icon to hit it, in previous versions I would have to press it multiple times)
3) Like the new visual asthetic touches they have added
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