Google Chrome auto-update is based on Omaha:
http://code.google.com/p/omaha/
Their overview has a great section on why it was needed:
The browser typically prompted the user with a long series of techy, confusing and scary dialogs all trying to convince the user not to install. Then the user was prompted with a wizard filled with choices that they did not need to or know how to decide amongst. These factors combined to form a bad user experience and large drop-off during the app installation process