I tried this on my newly purchased and just-registered Nook Simple Touch and I appear to be stuck at a boot loop; the "Nook by Barnes adn Noble" screen keeps flashing black restarting at the fourth circle.
I created the SD card, booted from it, waited until the screen turned black, removed SD card, restarted.
I don't think I was at 1.1 when I tried this.
You can set it ONE way, but not toggle between them. That is why you (probably) want softkeys, virtual button bar or button savior to take you to your launcher home.
Alternately, you could create a shortcut to the B&N home screen on your Launcher home screen using AnyCut or similar.