Yep. You can skip the first two steps though, they are only needed once.
At one point you are asked if you want to use the default config file or keep yours.
It’s safer to use the default and make your changes again. Depending on the version you are using now, the config file may not be compatible.
But you can sure try to keep your config file, and if you run into problems simply install mt-daapd again (there is a –force-reinstall option to ipkg) and chose to overwrite your config file.