Well, even though today hasn't brought the official iPhone SDK, there is still some good news in regards to 1.1.4 and third party software. The good news is, thanks to previously release methods, you can evidently upgrade to 1.1.4 and still enjoy third party software.
Now confirmed by such reliable sources as noted iPhone hacker Nate True, ZiPhone has proven effective on phones updated to the newest version of iPhone firmware.
The continuing success of these methods seems a direct result of the lack of major changes in the new firmware. All indications are that the firmware includes a few minor bugfixes, and very little else. Thus, methods developed previously to jailbreak firmware 1.1.3 continue to work on 1.1.4.Details on whether unlocking and activation methods effective on 1.1.3 continue to work with 1.1.4 are still forthcoming.