The default behavior when upgrading packages is not to clobber directories or delete files that aren't included in the APK, however, this is in effect what happens when updating using --private. It's wrong and I'm trying to figure out where we clobber this directory. AssetExtract.java looks like it's supposed to be working since mkdirs doesn't clobber directories by default.
This is definitely -not- correct in terms of how the rest of Android application development works. I'm investigating a solution because I have live APK's out there that will lose data on update if I don't fix this =)
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