Weird. Well, ipkg is really icky at times.
Time to teach it a lesson!
Cd to /tmp/ first!
Do this to uncompress the contents of the ipk:
tar -xvzf /tmp/mt-daapd_svn-1586-1_armeb.ipk
You’ll get a file called data.tar.gz and one called conf.tar.gz
Untar the data.tgz again:
tar xvzf /tmp/data.tar.gz
Then you find the mt-daapd binary in /tmp/opt/bin.
Make sure your mt-daapd is stopped, and then just overwrite the mt-daapd with this _stable_ one.
Yeah, I noticed that too — downgrading has been broken for a while. An ipkg bug.
I moved my repo config out of /etc/ipkg.d, ipkg update and ipkg install from local file.
Stupid, but there it is until they fix ipkg.