The unit comes with 2 types of on board storage. 16MB Flash RAM for system settings and configs as well as the statetable, and an EPRom of unspecified size. Obviously the EPRom is where the code known as the OS for the unit (IPoS to be exact), is kept.
When the kernel to the OS is updated a section of the EProm is changed. This is WRITE memory that is non-volatile. My guess is UBicom felt there was a significant enough change in the SDK that allowing downgrades from this new SDK could possibly damage or destabilize the unit. Normal firmware upgrade allows for the "addition" or DELTA of the firmwares to be applied. The CODEBASE is not re-written. When the SDK goes through a upgrade, the entire EPRom is re-written.
This isn't the first time we've done this, I believe this is the 3rd for this router. The 4500 also saw an upgrade like this (although that was a tragedy).
Moving on......if you believe that the firmware is causing your unit to fail, contact technical support, request that they assist you with your issue, and if not resolved request a replacement unit. You can even go as far as to request a unit with 1.21 if you like.
I'll close in saying this. There is nothing currently wrong with the 1.31 firmware from a preformance standpoint. There as some small java problems with the code that effect the UI, mostly involving some quirks with captcha.
I do not doubt for a second that upgrading the firmware on your router may ave caused it to malfunction or operate poorly, however please understand that it is not the code's fault. It IS however a combination of that code, your router and your environment. The unfortunate side is because the codebase is locked, you're extremely limited on what you can try as far as troubleshooting.
I appologize to all the 655 owners that are suffering with a unit that is not performing up to par.