Western Digital announced today that they have resolved the issue some experienced with the firmware update to 1.01.12 (read about that debacle here) and say it is now safe to update.
They also are offering to replace any bricked media players affected by the bad firmware update free of charge. Here’s the full announcement from WD:
We have tracked the problem to the Internet update process for WD TV Live firmware version 1.01.12. The firmware version is functioning normally, the problem intermittently occurred when using the Internet to update WD TV Live to version 1.01.12. If you've successfully installed update 1.01.12, there's nothing further you need to do.
If your product failed during the update process, we will replace it free of charge. Please contact our customer service department.
The product in stores and shipping today is functioning normally. Update version 1.01.11, and the Internet update process for 1.01.11 are also functioning normally. So if you own a product that you haven't updated, or buy a product today, you can safely update it with version 1.01.11, which is now the most current update.
We apologize for the inconvenience and thank you for your patience.
Definitely a terrible problem to experience with a hardware device, but good to see Western Digital is standing behind their product and doing the right thing here – kudos to them.