Have they retained the phrase "undeserved kindness"? -- Yes.
*Wince*
Yes, actually I seem to recall that during the run-up to the new release, as they remembered the original release of the NWT, specific mention was made of the change in wording from whatever they were using before (KJV?) to the NWT, when "grace" became "undeserved kindness". They dwelled on how that gave them a new perspective on the subject. (Perhaps not an accurate perspective, but hey.) So obviously they are proud and unapologetic about that translation.