Hi, I just installed The Daily on a development site and at the top of my Admin screen I see this notice:
Notice: add_custom_image_header is deprecated since version 3.4! Use add_theme_support( 'custom-header', $args ) instead. in /var/www/vhosts/new.intug.org/httpdocs/wp-includes/functions.php on line 2638
On the download page it says this theme is compatible with WP 3.4.2, so I don't see any reason to go back to 3.3.