the integrated update is used to install updates automatically (Philips will PUSH new firmware). They will do it, if the specific update solves completely a issue (as far as I see, this is not the case at the moment -> sound issue). If a new update is pushed from Philips you will get a message (like on BDPs) that a new update is available.

The integrated manual update feature can also been used to install small fixes (not complete firmwares) - e.g. integrated manual update.