The following revision refers to this bug:
  https://chrome-internal.googlesource.com/chromeos/overlays/overlay-kip-private/+/d2d70aee39149e5b39b92f027a04628221e3f0b9

commit d2d70aee39149e5b39b92f027a04628221e3f0b9
Author: Andrew de los Reyes <adlr@chromium.org>
Date: Mon Jun 20 17:16:51 2016

The following revision refers to this bug:
  https://chrome-internal.googlesource.com/chromeos/overlays/overlay-kip-private/+/902a071e1ad938b8e41e6b731afe25529d0cc55f

commit 902a071e1ad938b8e41e6b731afe25529d0cc55f
Author: Andrew de los Reyes <adlr@chromium.org>
Date: Mon Jun 20 17:16:51 2016

The firmware is reverted to 3.0 (kip) and 1.0 (kip+); marking as Fixed.  Users will get the fix in our next stable and dev updates (or in the currently serving beta build).

I was looking at the build numbers and it looks like maybe this patch didn't get included in the R53 / the "dev" build :(

I'm not totally sure, but by looking at this page that's what it looks like to me:
https://crosland.corp.google.com/cl?q=chrome-internal:265806

If you can't click that link, what it says are these are the first builds for each branch that include this patch:

Original change
master -- 8485.0.0
release-R52-8350.B -- 8350.38.0
release-R51-8172.B --8172.58.0 (log) (images)

The R52 and R51 branches seem right.  R52 should be in beta channel right now, and R51 is still waiting to get pushed to stable, judging by
https://cros-goldeneye.corp.google.com/console/listOmaha

However, it looks like the first ToT build that included this patch was 8485.0.0.  The build number of the "dev" branch for kip shows as 8481.0.0, which looks like it's before the master patch merged into ToT.  From what I understand, this means that dev channel users won't have the patch yet, is that right?

R53 doesn't branch for a few more days so I don't understand what that means...

I just switched to the beta channel and updated to 8350.38.0 and after a restart I still do not have a working touchpad.

Here is complete listing under About Chrome OS:

Version 52.0.2743.49 beta (64 bit)
Platform 8350.38.0 (Official Build) beta-channel kip
Firmware Google_Kip.5216.227.58

Re-checking for updates says I am up to date.
Again, v8350.38.0 did not fix the issue on our HP Chromebook 11 G4 EE (Kip)

Do I need to wait until 8485.0.0 or 8481.0.0 show up in beta channel for kip?

I can also confirm that switching to dev channel and getting latest update also does not solve our toucpad issue:

Version 53.0.2773.0 dev (64 bit)
Platform 8481.0.0 (Official Build) dev-channel kip
Firmware Google_Kip.5216.227.58

Hi Eric, can you file a feedback report with us right after rebooting your machine when it's on Beta channel (8350.38.0) and let us know once it's done so we can look at your system logs?  Version 8350.38.0 should have fixed your touchpad as far as I can tell, so hopefully if we take a look at the logs we can tell what is wrong.

Feedback instructions: https://support.google.com/chromebook/answer/2982029?hl=en

FYI, feedback was filed here:

https://hotsauce.corp.google.com/product/208/neutron?rPaneMode=explore&rView=tl&lView=rd&rTagFamily=%23issue&lRSort=1&lROrder=2&lRFilter=1&lReportSearch=user:eroemer@kv.k12.in.us&lReport=10352641910

It looks like the touch updater fails to attempt an update on reboot, or something similar.  I'm trying to repro now

This revert has uncovered  issue 624001 

Issue from #11 has been resolved