So, the update was in the wild for how many weeks? Days? Oh yeah. It was hours in the wild.
For those that have a residual issue with iPhoto, that update was reported, in this very thread, to resolve the problem when applied again. In fact, since Apple has pulled the offending update, just apply the available updates. You should be good to go.
For those that feel betrayed, or otherwise tricked out of a few hours of their day, please hold off on applying updates in the future until others have discovered any problems with the updates. Maybe a few days and a visit to a couple industry related news sites, or befreind an early adopter with more experience and thicker skin.
Because you have not previously had a bad experience with updates doesn' mean you won't in the future. It has happend to people in the past, and it will happen to people in the future. Maybe even to you. Keep a good backup strategy and repair any drive related problems before installing updates. That and some preinstall investigation, and you should be good to go.
Above all, know that no one is perfect, and a committee is just an animal with many legs, and half a brain. 😉