The Auto's were recalled to do a retro fit to the binding. My understanding is that if the cable was stepped on it could fray. Now this is the toe strap they were worried about breaking. If that would be a problem for you, well I doubt you are snowboarding right. Toe straps are nice but definitely not a critical attachment point.
I've demo'd the Auto and it worked just fine. The fraying was something I thought could happen. As with any first year product it's almost always best to wait a generation or two for them to work out the kinks. This seems to be exactly the case. I have a hunch that this sort of issue won't be a problem on the 08-09 models. Props to K2 for recognizing this problem and taking action to fix it.