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If you haven't had any freezes then you could stay with the 1.9 firmware. I also had the 1.9 firmware and my Opus froze quite a few times which was the reason I immediately grabbed the version 2.0
From my limited testing the major difference between 1.9 and 2.0 is that page turns seem to be much faster. Stability is still unclear since I haven't used my Opus for a long enough period to say that it's more stable than 1.9. There's also a change to how PDF's are handled, with automatic removal of margins.
As for which version to use - that'll depend on your buying habits. ePub seems to be the new format and most retailers have switched over to ePub. So in the long term I think it would be a good idea to go for the ePub version.
As far as I know the only downside to ePub is that there's no dictionary support. It's not something I've ever used, so it's not something I find lacking.
The update itself is quite easy to perform and I doubt there's much chance of it going wrong.
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