They haven't updated the Upgrade Guide in that link yet...it's on the documentation link for 4.1. Here it is:
http://www.vmware.com/pdf/vsphere4/r41/vsp_41_upgrade_guide.pdfI haven't ran 4.1 upgrade yet, but what I did for 4 was the similar suggestion you made above...I migrated VMs off my host, disconnected my datastore storage (SAN-based, so all I did was disconnect my fibre), performed fresh install on my host, reconnected my shared storage, then migrated VMs back (then I upgraded VMware Tools then Hardware on my VMs). It's more cautious this way...and I tend to side with the way of caution :)
~coolsport00