All looks good

do you still get iPhone updates once jail broke?
Once you are jailbroken you cannot update.
If you update...you will lose the jailbreak.
Jailbreaks are iOS specific. Every time Apple releases a new iOS...they patch the jailbreak exploit...then the jailbreak has to be updated to work on the new iOS. It takes a while.
Just do as every other jailbreaker does....don't update until a new jailbreak comes out for the new iOS.
Fortunately the latest iOS 5.1.1 has a working untethered jailbreak...so it's really not an issue at the moment.
Either...restoring will still make you lose your jailbreak...and you'll have to jailbreak it again.
If you like having a jailbroken iPhone...and wish to always have a jailbreak...then it is wise to download a tool called Tiny Umbrella.
Download it, save it to desktop.
Open it.
Plug in iPhone.
Select your devices name in the left pane.
Click "Save SHSH"
Done.
This does do anything to your device. All it does is save verification tickets that allow you to restore back to 5.1.1 should a new iOS comes out that does not have a jailbreak yet.
Apple does not allow users to restore to older iOS versions. That is why jailbreakers be Tiny Umbrella to save SHSH blobs.