The new history feature is very cool, although the up/down keys without a modifier key are a bit confusing to use, an option would be greatly appreciated.
About Alfred remembering/forgetting the latest entry in the history: Like the others in this thread, I too use this feature in v1 regularly (meaning pretty much all the time) and its sort of a deal-breaker for switching to v2. What about a solution with a dropdown menu where everyone could change the preferred way (and since it's already in the "Advanced" tab this would not confuse users who don't need it to much):
History:
Number of stored history elements: <number_input_field>
Automatically show latest entry: [never, for 5 minutes, for 1 hour, always]
Cycle the history backwards by using the [alt, cmd, ctrl, shift] key and the arrow keys
This way the old style and the new style could coexist and everyone would be happy. What do you think?