I used the zip to restore back to 1.2 stock, but before I did that I did this:
1. Used root explorer to copy a bunch of apks I used very frequently to my sd card (including launcherpro)
2. Dropped those apks into the system/app of the 1.2 update zip
3. Installed the zip
4. booted and went through setup, choose default launcher until everything settled
5. pressed home and selected launcherpro as my default
Now I'm running unrooted 1.2 with launcherpro, kindle, words with friends, ReadItLater, SpringPad, Due Today, and Advanced Task Manager (No, I don't use it regularly at all -- just for very specific cases).
I did try Audible and Opera Mini, but both of them crashed back to the Launcher when starting.
This worked for me for the time being. YMMV.