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Note: To upgrade, with the old version still installed, go to the Add/Import Product link on the Manage Products page, select the XML file for the new version, choose Yes for overwrite, then click Import.
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So no, don't uninstall the old version. The templates are up to you: The change log explains what changes have been made to them in each version, decide if you need the changes. There hasn't been any functionally significant changes to the template edits since 2.70, and even then templates as old as 2.50 release should still work fine with the core functionality.