Either way, Chrome installs cleanly without the user even having to know it happened. Firefox, OTOH, causes the UAC in Win7 to halt everything for the upgrade. It's not as transparent as maybe it could be.
It's not quite as efficient as the "Courgette" algorithm used by Chrome, but it's much smaller than downloading a full installer. Hopefully we can use Courgette if the patent issues* are resolved.
* http://ipwatchdog.com/2009/10/31/google-sued-for-patent-infr...
We're working on refining all of this; here are some of the things that may change in the default update behavior in future versions: https://wiki.mozilla.org/Silent_Update
My main point was really meant to be the UAC, since it was a bit jarring to see today (First upgrade on Win7; just bought this computer a month ago). I'm glad to see that this is being looked into.
On the bright side, I had absolutely no issues with add-on compatibility this time around. In the old days, I would wait a while - sometimes literally months - before upgrading, because of issues with add-ons I considered "important". I actually ended up backing up my profile before any upgrades, and often had to roll back the version. I didn't even think of that today, I just clicked apply and everything worked. It's a serious improvement.