So here's my story just for the record:
1) webOS v3.0.2 installed with original 3.0.2 pinyin installed. Obviously couldn't uninstall v3.0.2 pinyin.
2) I just uninstalled UberKernel for v3.0.2 just in case.
3) Installed webOS 3.0.4. rebooted.
4) 3.0.2 pinyin will be disabled, but you still still see En/Zh, although Zh is disfunctional, IME Baidu icon will still be in Menu.
5) Installed 3.0.4 Pinyin. Automatic reboot after install (just wait for it/stay calm).
6) Checked and it works. Removed Bihua/Wubi in Regional Settings
7) I normally don't use Traditional, but I think traditional with handwriting and pinyin works. IME Baidu settings - Output Traditional Chinese ON. Looks like it works...Also with handwriting/pinyin, you can select with finger, 2nd, 3rd, +up characters no problem.
8) Looks Good! Installed UberKernel v3.0.4. Reboot. works, AWESOME!