WSUS works fine on WHS 2011. I had it running for a while with Win 7 Home Premium but needed to apply the WSUS registry hack to get the client machines to check the WHS machine for updates.
Be careful though as if you decide to take the WSUS role back off the server you need to re-hack the client pcs to stop them trying to get the updates from that server as they do not use the WHS server as primary and then fall back to Windows update servers at Microsoft. If the local WSUS server is not available then they will just not update. I found one of my machines had not patched for almost a year after I removed WSUS from my WHS 2011 box. There were no obvious signs apart from an error when running Windows Update which of course my wife and kids never did (I have a different machine). It only came to light when my son could not load some homework websites he needed and I took a look.
A server should not really be used for day to day access. I touch mine rarely and never use internet explorer (or any other browser on it). If needed I download files on my own machine, let the AV on that machine scan and clear the download and then copy to a shared drive on the server. Console type server tasks are usually just down to disk maintenance, user maintenance and share / access issues. The server is set to auto approve updates and auto apply. Mind you, this is a home server and not a full on business server where I would probably want a bit more control.
RB