Yes, I'd definitely agree that the 'Quirky update' approach is the right one. I've always used an 'order by' but never tried clustered index/hints to force the order. It seems pretty robust too. I've used it in Sybase and, I reckon, all versions of SQL Server in the past.

The strange thing about the 'Quirky Update' technique is that, one has experimented with it, one discovers all sorts of problems that it solves. Directory trees, Book indices (Index, Use of, Updates), financial reporting. Whoever put the feature into Sybase was very far-sighted.