Microsoft/Windows update change ?

System: Windows XP Home Edition SP2
I have set Microsoft update to 'notify'.

Recently I restored an image.
I realized I didn't have the most recent IE 7 update. I waited a while, then got tired of waiting.
I tried using Microsoft update to get the latest update.

It required me to download new MS updating software ! I didn't like that, so I gave Windows update a try, it somehow switched to MS update, so that didn't work either. So I decided to download that software, and got the required update.

However, I didn't like putting that new MS software on my computer.
What does it do ? I have a legit version, and I really don't like having an *improved* version of Microsoft's phone-home software.
This issue is very new, a few months ago it didn't exist. Does anyone know more about this ?

Since I didn't like it, I decided to restore an image, and within a few hours the IE update was offered the usual way, without a need to install new MS updating software.

 

The "new software" are compulsory and are most like be the Genuine Advantage tools to detect the genuineness of your Windows. I hope I am interpreting your "new software" correctly.

 

(Non-English OS btw)

Yes, but it's odd that I don't have to download that 'new software' when I just wait to be notified of new updates. After the notification I can just choose to download and install the new update. It's possible that WGA software was updated in stealth mode when I waited for the latest IE 7 update, but I suspect that's not the case.

So I wonder what has changed and why. As I stated, a few months ago this issue didn't exist.