Right after installing version 1.7, the blinking stopped after around 2 minutes (with the same settings with which the older (1.4, 1.5, & 1.6) versions worked). Performing a soft reset fixed the issue; looks like a soft reset is necessary right after installation.
With regards to the "midnight bug", I made initial tests (thrice) by inducing a change of date by setting the time just a few minutes before 12 and allowing the time pass normally. In all three tests, after passing the fake midnight and observing just a few more minutes or so, the blinking did not stop. However, by doing that, the time on my device is no longer synchronized with the "correct" time. So, just to be sure that the midnight bug's fixed, I would be observing the behavior of the application further, this time while using the "correct" time.
I'll keep you posted....so far, my LED's still blinking.