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Not sure if this is intended or not
I wasn't entirely correct, before and after hooks do work on the instance/class, but you have to specify the exact method, I was mistaken in believing before(save) would trigger on update. There's still an issue where instance functions aren't working though, I'll look into that.
Edit: instance functions for update won't work in a before/after hook because update simply pushes the properties and not the object itself. A failing test: https://gist.github.com/3438974.
Has anyone found a work-around for this 9 month old issue? It's biting me right now, as flatiron/restful uses Resource.update for PUT requests, and I've got a number of before/after hooks which expect a fully hydrated resource, not just the update properties.
@ssevertson Are you running with a cache? You can pull the fully hydrated resource from the cache based on the id.