Ok got car back. The update is as everyone is describing, significantly reduced but still there. Its as if they have altered the setting so that upon reacceleration the system blips the throttle, and gives you half power for a second and then gives you full power. Its a significant improvement but not completely eliminated. its about as good or marginally less than i expected although i am pleased i had the update. Not pleased about the effort that it took to get it done. for information, i tested the car in D2 and S3.
On the ignored down shift request, the dealer put a new steering wheel on and the issue has gone so that is good.
the good news is that i asked them to polish the car as a good will gesture for the inconvenience and glad to say they did a good job from what i can see.