Since we're discussing this topic, I shall post my experience in case it may be useful to anyone.
I had renewed my DL last year (NJ) while on H1B and before I was forwarded to the clerk who takes photos etc, the receptionist thoroughly checked my documents in her computer. I am guessing there was some linkage to the USCIS system where she was checking the authenticity of my approved I-797 form. I was given a three year DL and it stated that I was on on "Temp Immgr Status".
When I got my GC few months ago, I went to the DMV and asked for a new license. The receptionist told me not to worry about the wording and renew my DL when it expired instead of wasting money on a new one. She also mentioned that there was no obligation on my part to inform DMV about my status change. She sounded quite confident and seemed to know what she was talking about, so I took her word and still carry a DL that has the temporary status wording on it.
Stoned!