You've basically got the idea with sourcing sql updates past your install dates . Updating the database is problematic- make a backup first and experiment. This won't update zones/npc's/items for more content though.
I might be worth just trying to source the new peq database without deleting characters/accounts (the readme in the file says how) once you've compiled the new source (need to do on Visual studio 2012+)
If you do an svn update on the quests and maps folders then it will update automatically. You will need lua as lots of them have been converted over (it may even be *most* now).
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