I thought it’d have been easier. Ok it was pretty simple. Just FTP the new release over the current one. I made a backup first. I had hacked up the default theme a good bit to I had to restore my hacks. Maybe it would be easier if each new version of wordpress shipped with a versioned default theme. So default-2.0.2 or default-2.0.4, etc. This way any upgrade is as simple as copy over your files.