What is the drawback ? I don't find any in what you say.
So I'd go for it. Seems your old employer has come to realize your worth, which puts you in a stronger negociating position. Next time you try stomping your foot, he's more liable to listen.
As for hours, yeah, programming is not really a 9 to 5 job unless you work government. All you can really do is watch out for the worst exploitation measures, otherwise, crunch time is always lurking near you, you have to accept that.
My personal opinion is that I no longer do overtime for companies. I have given a lot of time (including weekends) for corporate projects without any recognition, not even a smile. You take that for a few years, then you get downsized without even a "sorry mate, we really regret it".
Kind of put my perspective back in place.
Nowadays, if the boss is incapable of correctly forecasting the workload, does not listen to the warning signals, is unwilling to get more resources and is putting the blame on everything but his poor management, I won't do a minute more than necessary. I fail to why I should constinuously pay the price on my personal time. I also have a family, and I prefer seeing my daughter grow up.
On the other hand, I will do overtime for my boss if he bears his share of the workload, dishes out the blame fairly and puts his butt on the line to shield us from unnecessary political bickering. For a guy like that, I'll do weekends if necessary, because I know that when he asks ; first: it really is necessary and second: he'll owe up to me down the line.
I can do overtime, but only when I respect the guy who's asking. The company ? It doesn't care about me, so why should I worry about it (outside of doing my work correctly, of course) ? The company will fire me when it sees fit to, whether I'm good or not. If I'm not, it'll just come quicker.
My two cents worth.
Pascal.