Just installed the kernel from natty-backports, the above seems to do
the job .

so, the workaround above works for kernel updates, and to rebuild
'/boot/grub/grub.cfg' one has to run it manually .

but maybe it still would be nice if update-grub will do the thing as
expected.

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https://bugs.launchpad.net/bugs/826163

Title:
  update-grub seems to ignore /etc/default/grub in 10.04.3

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