I think we are in the same boat... I have a 'launch ready' site running locally, and I am prepared to jack-up to 1.2.0 on a clean install locally, and transfer the templates for the sake of a couple of days work.
Try not stress... I feel strangely reassured by the (perceived) delay with the new version... It saves us all having to install a patch or two over the next few weeks...
moog
-- I've spent most of my money on beer and women... the rest I just wasted.