well ive had a fun morning so far. i tried removing superuser to install supersu and follow your steps. in the supersu thread it was reported superuser can be uninstalled and supersu installed instead; this did not work for me, supersu could not install the su binary.
while i had no root, i tried the rest of the steps you described and the update went red triangle. rebooted fine to ics so i didnt try it again.
so i have superuser installed again, verified root with adfree & titanium. i did uninstall busybox as you described, but everything is working for now and thats a simple reinstall anyway.
considering i just went from a froyo phone with a buggy rom (that became a lot more reliable than it was from the start) to now an ics phone, this is plenty upgraded for me. i wouldnt mind jb but i dont know of any killer feature and so far its not worth the hassle.
since ive regained root maybe ill wait for a good solid rooted rom with jb. until then will the phone attempt to install the update without my interaction? i hope not. anyway thanks for the help dont want to completely hijack the thread.