[Bug]:Select option doesn't update when changing the model

[YonatanKra]

I've found this one when trying to manipulate the select component from the model.
Here's my scenerio:

1. User has a select in the view
2. UI gets an update to the model from the server:
   2.1) Change option text
   2.2) Change selection
3. I'd expect both to change via the angular binding
   What happens is that the selection changes, but not the option.
   Here's a demo: http://codepen.io/yccteam/pen/PqWBZr
   The "server" sends the update 2 seconds after load (using $timeout to simulate this).
   Notice that even though I've changed the model to "Three", it still shows the "One", until I refresh the component in some way (close/open it).