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After reading the number of problems people are having with the latest kernel version, I'm a little hesitant to upgrade recklessly because my system uses a lot of the components that seem to be causing problems (acpi, nvidia, etc.)
If I need to downgrade to an older version of the kernel from the pacman cache, is pacman smart enough to automatically downgrade other packages that depend on the newer kernel version (nvidia, etc.), or is that something I need to track manually?
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No, pacman is not smart enough to do that because arch _technically_ has no concept of downgrading. We do not keep old versions in the repos.
What you need to do is make sure old packages are in your cache. You will have to use pacman -U to install the old kernel and old versions of modules that depend on the kernel.
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