Isn't this basically the way it was previously?

In the past, when you installed Java, it came with a plugin that was available for IE and Netscape...is that any different except now it gives you some notification of its installation?

I suppose if you don't have Java installed then yes this is new, but if you plan to visit a Java enabled site, then you would have the chance to install it then also (just like if you were trying to install the Flash plugin). With the new plugin it only installs the needed items (with the remainder of the JRE installing in the background).