No, it fails using that template too:
[SETUP] WAIT 4...
[SETUP] WAIT 3...
[SETUP] WAIT 2...
[SETUP] WAIT 1...
ets Jan 8 2013,rst cause:2, boot mode:(1,7)
ets Jan 8 2013,rst cause:4, boot mode:(1,7)
wdt reset
If you see such log after initial upload of httpUpdate.ino using serial, then likely you have h/w problem with module.
If you see it after OTA upload, then likely you did not reset module after initial serial upload - see: https://github.com/esp8266/Arduino/issues/1782
Interestingly, when I reset the unit, it just spits out garbage in the serial monitor. I have to upload the sketch every time which makes me think that it's trying to install the bin and it's breaking somehow.
If you load standard blink.ino sketch, it will output just garbage as it does not initialise serial.
I have tried your file, it uploads using httpUpdate.ino, but does not blink my LED connected to GPIO2. I think you may be blinking another GPIO or the file is indeed broken.
Check this great tutorial - https://www.youtube.com/watch?v=UiAc3yYBsNU
It provides piratical examples and even a server with sample bin files to try OTA with HTTP Server method.
Hope this helps and good luck with beating OTA to work for you