Did you try Deep Sleep? It allows you to change the hibernate mode without Terminal.
http://deepsleep.free.fr/
You basically did the same thing the widget did.
"• Regular sleep mode: chooses the sleep mode which will
be used when the computer is sent to sleep by the Apple
system menu, or when its lid is closed on laptops.
• Widget sleep mode: chooses the sleep mode which will
be used when the widget is clicked on.
For each of these two fields, three settings are available:
• Quick: No hibernation features are enabled. Also known
as mode 0.
• Safe: Hibernation features are only used when the computer runs out of battery power.
Also known as mode 3 or 7.
• Deep: Full hibernation. Also known as mode 1 or 5."
Glad you got it fixed, was quite frustrating for me. I notice now that the new Airs will now simply die when the battery runs out, just like the good old days <grin>