Steelpan, the need to upgrade your Beolab3500 depends on your actual planned usage of the Masterlink Gateway functionality. I have upgraded my whole system including a number of Beolab3500s, but I did discover that the upgrade is only needed if you plan to make use of the full MLGW functionality i.e. light control and homeautomation.
If the latter is required then the speakers (and other system components) need to be upgraded in order to receive and handle the "Light" commands that are used to trigger the various Macros or Commands within the MLGW.
If you "only" want to control the actual B&O components then an upgrade is not in my experience needed (possibly with a very old s/w level).
The upgrade in itself is relatively straightforward and if you are used to electronics and are generally handy then the replacement of the Microprocessing unit is not difficult and I performed it without even taking down the speakers from their positions on the walls.
The only tricky aspect is repositioning the ribbon cable connector between the circuitboard and the processing unit but again with a little patience and skill then I certainly managed without too many swear words.
The replacement unit comes with detailed instructions as to how the upgrade is done.
//Rolf