NO, if you are running on 1.0 you will get notification about the new update Once you click on it, that will download the file ( 93 MB ) and will install the new one, that is how I did it in my Dev Keon.
Updating manually did the trick. Of course, all my user data was wiped, but that's OK. It's a developer device, after all.
I want to add: After updating manually, it seems necessary to ignore update notices on the device. With version 1.1, I got an update notice on the phone, and after following it, it came again, and then again, etc. With version 1.2, I also got an update notice on the phone, and after following it, I was back at version 1.1.