The good news is: if you don't deal with the unicode non-breaking-space character at all (and all your html files contain the "standard" XHTML 1.1 DOCTYPE declaration), you can continue to use Sigil 0.7.3 with no issues (it's what I do). The #160 vs nbsp handling is the only real functional difference between 0.7.3 and 0.7.4.
(0.7.4 also represents the first disk-image available for OS X in a while, but that's another issue entirely).
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