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My responce is always dependent on whether or not I feel I need to. If the add-on is working fine and bug-free for me, I ignore the notification. I will always make a note to look at the new version (mostly to see if any new features are available), but if I'm not experiencing errors otherwise, I just note it and update it later.
Note that I won't report bugs in older versions until I have verified that they still exist in newer versions. As an author myself, I can definitely appreciate the motivation to add an update notifier in there, but I choose not to on my own. If I could make a suggestion: if you do add an update warning, can you make an option to toggle it off or at least have it only notify on load? There are a few out there that pester me every time a guildmate is logging in with a newer version and it drives me insane :-D