In all of my knockout custom binding handlers, I always omit the update callback. My reasoning is that I can do all of the work I need to do inside of the init callback. In there, I can create computed's, call applyBindingsToNode (if I need) or setup manual subscriptions to subscribables and do my DOM manipulation inside those subscriptions.
My concern is that the default bindings in knockout are built using the update callback only.(Update: Not anymore, value and some other bindings only use init now) Is there any downside to doing all the work inside the init callback? Is there anything I'm missing? Thanks!