I haven't had any issues with the laptop going to sleep when it's told with this setting enabled, and afaik battery life is unaffected (still haven't changed batteries in the keyboard after 3 years).
Regardless, I'll still be checking out this mod. I didn't even know this keyboard had LEDs in it.
Suggestions for Microsoft product developers if they ever read this or care:
1. Fn keys have got to be like the rest of the keys. Like other users here, I get F5 (which I use to run code in Visual Studio) stuck probably greater than 50% of the time.
2. Separate Fn key, or separate media keys. The switch is stupid, and I never use the non-Fn functions.
3. Take the calculator key off the main keyboard; it's a duplicate of the key on the numpad, where it is actually useful.
4. I'm ok with the backspace key on the numpad, but the top 3 keys should be regular keys, not microswitches.
5. Better power management and wake-from-sleep. This thing should never be dropping keystrokes. Ever. I'd trade battery life for this feature.
6. Make wired optional! Almost everything has a charger these days...why am I given alkaline batteries for this? This also potentially opens up the gamer market, given the latency reduction shown in this article.