The reason for finally doing it was to try out the 720p video recording feature but due to my ignorance i just spent the last day with the camera app crashing.
This morning i flashed the radio to the newer 4.06 available and now have 720p working like it should. A 10sec clip is about 8MB in size in a 3gpp format. I uploaded a quick clip here if anyone is interested.
There was a few hairy moments along the way with reboots and what appeared to be overly long pauses but it all seems to be dealt with.
Cyanogen seems to be performing more stably and a little smoother with no loss of functionality, in fact more in reality. Although i have noticed the touchscreen still has a few problems every now and then with the sensitivity going haywire.
So yeah, 720p seems to work, i love the coloured notification lights, and i will likely continue to flash new updates, especially once the froyo source has been released.