Privacy status not correctly updated when saving a node

I think this code inside of cck_private_fields_nodeapi() is broken. If you enable private fields, set a field to "Hidden by default", and then later go and change the field to "Private by default" the information never gets updated in the {cck_private_fields} table.

The problem is hook_nodeapi('load') loads information from {cck_private_fields} in to the node object, then hook_nodeapi('update') deletes the information from the table and cascades in to 'insert' which then just saves the same information that was just deleted back to the table.

case 'update':
  if (!empty($node->cck_private_fields) && is_array($node->cck_private_fields)) {
    db_query("DELETE FROM {cck_private_fields} WHERE vid = %d", $node->vid);
  }
  // Fallback to 'insert' case is intentional.

case 'insert':
  if (!empty($node->cck_private_fields) && is_array($node->cck_private_fields)) {
    module_load_include('inc', 'cck_private_fields', 'includes/common');

    $private_fields = cck_private_fields_get_content_private_fields($node->type);
    foreach ($private_fields as $field_name => $privacy_status) {
      if ($private_fields[$field_name] !== FALSE) {
        db_query("INSERT INTO {cck_private_fields} (nid, vid, content_type, field_name, privacy_status) VALUES (%d, %d, '%s', '%s', %d)", array(
          $node->nid, $node->vid, $node->type, $field_name, $privacy_status
        ));
      }
    }
  }
  break;

Path to follow shortly.