My opinion is that code first's automatic database creation is only for development. I answered similar questions on Stack Overflow where I described both how to upgrade the database and why is automatic functionality bad in production:
- Deploying database changes in EF 4.1
- Using EF4 code first: How can I change model without loosing data
Upgrading the database is semi-manual task. There should be no automatic untested magic behind - moreover EF 4.1 currently doesn't have any such magic available (there is only some presentationsome presentation about features ADO.NET team is working on).
You can also check this question to more better understand how are web sites upgraded.