As per Paul Thurott (
www.winsupersite.com), There has been little to no difference between 7209 and 7229. It does not matter which one you use, but you might as well just use 7229, it just makes sense.
RC1 will not be obsolete. I'm sure plenty of people will continue to run it till it expires on 3/1/10 (shutdown every 2 hours) and 6/1/10 (completely dead). Win7 has been stable since Beta 7100, so it isn't a big deal to continue running it.
Windows 7 RC1 cannot be upgraded to RTM. Beta 7077 can be upgraded to RC1 (older versions can be hacked into upgrading). Clean installs are always better anyway.
The OS will not "update" to the final release. Security holes will be updated, but any type of user experience improvements (if any) will not be. My understanding is that RC1 is something like 98% of what is in RTM.