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This change fixes a couple of issues with using the up/down keys: #1603
I don't know exactly what was causing the issue but I've resolved it by reworking the way it gets the index. The code is much simpler and should be more robust.
I also improved the performance of the keydown function by only selecting the $items when needed. This helps both when using the arrow keys and when typing in the livesearch in a very large list. Note I've removed the code that applies a filter based on the livesearch as it didn't appear to be used - I assume it was left over from an older version.