I wondered the same thing, so I tested it, I had a console that had been marked for banning ( anytime I transferred saved games or my profile to it from another console it would be corrupted) but I could still play online, so I dissconected it from live cause I knew a ban was coming. So I heard the news today and decided to plug in my console and try it, not only did it update fine, but now my console no longer corrupts my profile or save games, my console has been unbanned it appears
