First of all I appreciate your plugin and from my early testing, it appears to be a great solution!
I applied the 0.7 update this morning to my 2.8.4 site and it failed to reactivate. Consequently it left a db.php and some other file in the wp-content folder. This caused my site to go down and only display a blank white page.
Fortunately I read a post on WP support that described a fix by removing those files. I've since deleted the entire plugin until I hear of a fix.
I will try your plugin on my test site to see if it works before I try it on my production site.