I'm looking to upgrade too or atleast get a discount on Version 2 or the special edition.

Are we getting close to this by now?
"YRG-1000 Loyalty Program for Gen1 Customers "
July 3, 2012
The YRG-1000 Gen2 will replace the Gen1 and will be the only product in its family (YRG-1000) produced by Inspired instruments Inc. It will be launched early August 2012.
So what does this mean for the Gen1 and existing customers?
Well, production of the YRG-1000 Gen1 is complete. The YRG-1000 Gen2 will replace it as our primary product. Customer, technical, and bug support will continue for all models. Furthermore, we will continue working to implement DLC functionality for both platforms and plan on offering some upgrade paths for Gen1 users.
We recognize that some of our existing Gen1 customers may want to upgrade and we value that support. So in the spirit of support we will be offering a YRG customer loyalty program. Our existing Gen1 customers will be able to upgrade or trade in their units to receive a discount on a Gen2. We have not figured out the specifics of the program, but will be sure to announce it before our DLC goes online.
So what makes the Gen2 different from the Gen1?
Since we launched the YRG-1000 in mid 2010 we’ve learned a huge amount about our own product. Through a series of firmware upgrades we were able to build the Gen1 into a stable, affordable, and powerful MIDI guitar. However, the production and testing process for our product is extremely complicated. Having the product produced overseas has helped us keep the price down, but it has also been a cause of some technical and performance issues. To mitigate these issues we have moved final assembly, test, and QC from China to our California facility. In addition to the procedural change we made several design improvements to our pickup system which will increase consistency and reliability. The new design allows for more dynamic control over the feel (loosening and tightening), trigger, and gain parameters.
More over, the Gen2 platform has new onboard sound drivers, substantially increasing the value of the onboard synth. We have also included features that increase the amount of control the user has of the onboard synth, external MIDI devices ie: DAWS, composition, and notation software.