I am also on the version 3 firmware for exactly the same reason: capacitive touch. Hope your acoustic project goes well and look very much forward to your experiments! The guitar portion of ALT sounds very good to my ears, too. With the Duo and come pickups there are endless options to individualise your sound.
My guitar is a PRS Custom SE and I made the big mistake to disassamble it completely for putting the ALT in the Bridge. I thought I would put a Bela in the guitar itself, but it did not work out as expected, so I bought a piezo bridge and now the wiring is difficult and there is no way to get all the sounds possible. So I'd have to compromise and thus is does not get finished. Well, I tell myself it sounds quite OK, when played without amplification, too.