I just got an Java update notification that Update 17 is out, so I ran the update and found that only my public JRE was updated. I still only have Update 16 of the JDK.
Secunia PSI (a free version that runs on a single PC) will update it automatically. Read a review of it here. If you're running both Java 6 and Java 7 JREs (like me), there can be glitches and you still have to update manually sometimes.