Join Date:Joined: May 2011
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No it wont root the device. Your current rom and kernel will remain as they are and it will update only the base firmware/bootloaders to 4.3. And yes, it must be flashed from custom recovery, TWRP recommended. If you don't want root or custom recovery, this or using the Software Update option are your only choices.
I've tried making an Odin flashable package, but it hasn't worked. If I have time I might try again this weekend. Can't promise it though.