I'm inclined to agree with you but imagine the scenario where you're having connection problems. What's the first thing your ISP first line support will insist you do? Make sure your router is running the latest firmware. I'd much rather encounter "new" difficulties while I'm
not having problems rather than waiting until I am.
I'm not convinced it's a new bug as such. With both the V4 and the V5 (two different chipsets) now not supporting Loopback, it looks like a feature Netgear have decided to drop. At the least, it should be listed in the "what's new" section of their download page.
John.