For my devices, it works just fine with latest koreader. KA1 and H2O (first version, not second). Didn't update to latest firmware though.
But, you obviously knows something I don't. And yes, I don't want to use nickel, if I don't have to. That's why I don't update firmware and everything works for me without problems.
And yes, I still hope that some day tshering will continue to develop KSM, I'd certainly use it on newer devices if possible.
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