Since it looks like the 1.6 patch has modified/added values to the skyrim.ini, is it necessary to delete my current skyrim.ini file and have the game (1.6) generate a new one? Or does the 1.6 game update it even if one exists?

I usually make new ones mate. Copy mine to desktop and delete them from my games folder. Start the game to generate new ones.

The using winmerge or a similar program, a bring up skyrim ini from desktop and my games and it shows you the differences. That way I can put back my own edits. Then repeat again for prefs

I personally don't refresh the INI file unless I changed something drastic, like overhauling the INI files or getting new hardware or something, or if the game is having issues (which I've never had on my end >.>).

I've never had any problems. The only setting I have changed, though, is the "Always Run on Startup" option to off. Your mileage may vary, as always.

Both of my ini files are readonly and I'm playing with Steam in offline mode.
So unless it has a way of turning itself on and resetting my file properties I'm reasonably confident that I should be fine. I'm quite happy with the game patched to the level that it is currently patched to, thank you very much.
But I do also have a (recent) back up of the ini files anyway, just in case...

Hmph. I am thinking that a refresh may be good and then put my edits back in, so whatever settings Skyrim puts in with 1.6 get done. I have played about 6 hours without doing this and no noticeable effect, but who knows what I could be missing

Thanks for the feedback.

That reminds me, I need to do a diff of a full INI file from 1.6 against the one from an earlier patch I've got lying around. Thanks for jogging my brain.

Glad to of service