The Flysky is a fine radio. Flysky actually makes the 9X and 9XR for HK. The 9x actually claims to have V2 software, but I'm not sure of the difference. The 9XR has its own software, which is based on ER9X, which is an improved, open source software. It has a battery holder that takes 8 AA cells.
You can buy the Flysky or 9x and fly with Turnigy receivers, which are inexpensive and good. The software can be updated, but that requires an adapter, and some soldering, or an additional board. The screen doesn't have a backlight.
The 9XR comes with ER9X software, which is great. You don't need to upgrade unless you want a slightly different version, that will support telemetry on the radios screen, or a voice module, for example. The radio comes wired for an update, but you still need an adapter.
You still will need a transmitter module for the 9XR. HK will eventually bring out modules that use the internal antenna, but for now, they all have an external antenna. You can get a Frsky module that supports telemetry, and has an excellent reputation, an Orange spektrum compatable, if you have a lot of Spektrum receivers, or a 433mhz module for long range, and a few others.
A complete setup with Frsky module, receiver and recommend battery pack would be:
http://www.hobbyking.com/hobbyking/store/__31544__Turnigy_9XR_Transmitter_Mode_2_No_Module_.html
http://www.hobbyking.com/hobbyking/...d_11_1v_3s_2200mAh_1_5C_Transmitter_Pack.html
http://www.hobbyking.com/hobbyking/store/__14355__FrSky_DF_2_4Ghz_Combo_Pack_for_JR_w_Module_RX.html