That didn't take long...

It’s not known yet exactly what the firmware update does, but the update is not optional, with Vita users having to update the handheld to use all the features and play all the games. If you have a Vita, you can update over Wi-Fi, PS3, PC or 3G with a 3G capable Vita. More information is available on the official firmware update page.

http://playstationlifestyle.net/2011/12/16/playstation-vita-firmware-update-v1-50-released/

Does it matter?

Sony love their updates so not shocked at all! Might even be in retaliation to the PSP emulation access hack reports since quicker to get one out to one region than the whole world like PS3 updates!

Yes. A day after launch, a handheld loses features unless you start downloading stuff.

Why so positive it's gonna be taking away a feature? It says no one knows what the update will be.

" but the update is not optional, with Vita users having to update the handheld to use all the features and play all the games"

Maybe it's not a permanent loss, but still.

The update could be to fix problems with the HTML5 issues, but if it was a "positive" update, Sony would be all over announcing the fixes.

Not, "UPDATE! OR DON'T PLAY!"

Still not seeing why you are coming to the conclusion that this update is a bad thing sure it's VERY early in the psv life but still.

Whats the problem? Updates are good. So unless you have dial-up I don't see whats wrong.
Funny thing is that those of you complaining don't even have the Vita.

Boom! Money shot! I didn't want to be the one to point out the obvious.