Took about 3-4 extra minutes to boot up, presumably to recreate the contents of the directory, but now all of my apps are showing the correct version, correct icon, and correct name. Haven't run into any issues yet.
I tried this out and all the programs I'd been having issues with were fixed. I rebooted. Still fixed.
But then I installed three updates and after reboot, the same issue came back again. There must be another cache store somewhere...maybe Android Market related, or at least the Android package manager. Either way, I guess some more digging is in order.
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