I was surprisingly out of space (I try to avoid apps that aren't optified). Getting rid of some apps that use QT4 helped, got me to 17 MB free. I then rebooted which got me to 70 MB free. Now I'm happily updating

EDIT: No further free space available after update. I wonder if the person who reported that saw it just because of the reboot and not the update. It reset my theme from the orange one to the blue one. No other changes in settings noticed right away, including TV Out settings.