We also handle system updates by using a A/B partitioning scheme, so you can even turn off a device in the middle of an update without breaking it. The additional benefit from that is that all system updates are atomic and self-contained, so you always have the newest version without any potential leftovers from the previous version (or the previous version if the update got interrupted). Customers that have installed our first version 3 years ago now run the exact same OS that we released today. It makes it really easy to provide support.
For obvious reasons we also need a read/write partition to store downloaded assets. We treat this partition as volatile and have an easy way to automatically verify and repair content if anything gets corrupted for whatever reason.
If you want anything running reliably on a Pi, I feel this is the only way to do this.