I just updated to 1.1.2 and my PSS Sim kit still works perfectly! :D
I was on 1.1.1, installed OktoPrep using installer, updated to 1.1.2 with iTunes, and uploaded the patched lockdownd file to get the phone to activate. Everything is working fine, and none of my settings were lost. I also did not have to sync everything back because this was just an update, not a restore. YouTube still works as well.
Overall a very painless update to 1.1.2! :)