Now can I upgrade to 4.1 but keep my existing Baseband?
TinyUmbrella helps, but if you want to play 100% safe. Wait until the Dev Team releases the updated Pwnage Tool.
this tinyumbrella thing dosnt work on 3gs correct?
For saving SHSH, yes. For keeping the baseband from upgrading, no. You'll need something like pwnage.
i saved my old baseband BUT upgraded the to 4.1 and baseband got updated too ! how do i go back ... ?
Can't roll back the Baseband once updated, (except for some specific cases using Fuzzyband on a 3G)
so whats the point of backing shsh? just to go back on iOS not on Baseband?
Assuming that you don't plan on unlocking, is there any advantage to upgrading your baseband? bug fixes, performance, etc.?
(other then requiring TU to kick you out of the initial activate screen)
Correct, ShSHs allow you to install older version of iOS and also "custom" packaged firmware.
You don't need your SHSH store for installing cooked firmwares as long as it's the current one.
Not true about it needing to be a current firmware. A pwned phone does not even perform the signature check when you install a custom firmware, so you can install any custom firmware on any pwned phone regardless of SHSH status. Just stay on the jailbreak train.
ETA: Of course you can't install a firmware earlier than the one you are currently on, since downgrades can only be performed in DFU mode and that bypasses the pwned bootloader. But you could install, say, a custom 4.0 on a phone at 3.1 pwned even without saved SHSH.